Which of the Following Statements Is False with Regard to Cash

question 34

Multiple Choice

Which of the following statements is false with regard to cash flows resulting from financing costs?

• A) They should be included in the cash flow calculations.
• B) Financing cash flows can include dividend payments to stockholders and interest payments to bondholders.
• C) Financing costs are captured in the discount of a project's cash flows.
• D) If cash outflows associated with financing costs were deducted from the cash flows for a project, it would be double-counting the financing costs of the investment.
• E) All of the above statements are false.

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