Which of the Following Statements Is FALSE

question 49

Multiple Choice

Which of the following statements is FALSE?

• A)The money taken in by the firm as a result of the share issue exactly offsets the dilution of the shares.
• B)Most analysts prefer to use performance measures and valuation multiples that are based on the firm's earnings before interest has been deducted.
• C)Because the firm's earnings per share and price-earnings ratio are affected by leverage implies that we can always reliably compare these measures across firms with different capital structures.
• D)In general,as long as the firm sells the new shares of equity at a fair price,there will be no gain or loss to shareholders associated with the equity issue itself.

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Definitions:

Control Of Movement

The regulation and coordination of muscle activities to achieve voluntary and involuntary motions.

Primary Colors

Primary colors are fundamental colors (red, blue, and yellow) that cannot be created through the combination of other colors and are used as the basis to create a wide spectrum of other colors.

Light

Electromagnetic radiation that is visible to the human eye, fundamental for visual perception and involved in various biological processes.

Trichromatic Theory

Explanation of color vision based on the coding of three primary colors: red, green, and blue.