Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A) The WACC can be used throughout the firm as the company-wide cost of capital for new investments that are of comparable risk to the rest of the firm and that will not alter the firm's debt-equity ratio.
• B) A disadvantage of the WACC method is that you need to know how the firm's leverage policy is implemented to make the capital budgeting decision.
• C) The intuition for the WACC method is that the firm's weighted average cost of capital represents the average return the firm must pay to its investors (both debt and equity holders) on an after-tax basis.
• D) To be profitable, a project should generate an expected return of at least the firm's weighted average cost of capital.

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Definitions:

Confederate Army

The military land forces of the Confederate States of America during the American Civil War, fighting against the Union.

Brutal Treatment

Describes the harsh and inhumane conditions or actions imposed on individuals, particularly slaves or workers, by those in power or authority.

Emancipation Proclamation

A presidential executive order issued by Abraham Lincoln in 1863 declaring the freedom of all slaves in Confederate territory during the American Civil War.

Confederate States

The Confederate States refer to the eleven southern states that seceded from the United States from 1860-1861, leading to the American Civil War.