Which of the Following Statements Is False

question 16

Multiple Choice

Which of the following statements is false?

• A) The levered equity return equals the unlevered return, plus an extra "kick" due to leverage.
• B) By holding a portfolio of the firm's equity and its debt, we can replicate the cash flows from holding its levered equity.
• C) The cost of capital of levered equity is equal to the cost of capital of unlevered equity plus a premium that is proportional to the market value debt-equity ratio.
• D) If a firm is unlevered, all of the free cash flows generated by its assets are available to be paid out to its equity holders.

Recognize the characteristics and advantages of different forms of business ownership.

Determine the appropriate form of business ownership for specific business needs and scenarios.

Understand the process and benefits of patenting an invention.

Grasp the concept of trademarks and their significance for a business.

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Definitions:

Disinfection

The process of eliminating or reducing harmful microorganisms from inanimate objects and surfaces, except for bacterial spores.

Blood Pressure Cuffs

A device used in conjunction with a sphygmomanometer to measure arterial blood pressure.

Reflex Hammers

Tools used by medical professionals, particularly in neurology, to test deep tendon reflexes as a part of the neurological physical examination to detect abnormalities in the central or peripheral nervous system.

Ultrasonic Cleaning

A method of sanitization that involves placing instruments in a cleaning solution in a receptacle that generates sound waves through the cleaning solution, loosening contaminants. Ultrasonic cleaning is safe for even very fragile instruments.