Which of the Following Statements Is FALSE

question 106

Multiple Choice

Which of the following statements is FALSE?

• A) The relative proportions of debt, equity, and other securities that a firm has outstanding constitute its capital structure.
• B) The most common choices are financing through equity alone and financing through a combination of debt and equity.
• C) A project's net present value (NPV) represents the value to the new investors of a firm created by the project.
• D) When corporations raise funds from outside investors, they must choose which type of security to issue.

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Definitions:

Hole-in-one

A golfing term that describes the act of a golfer hitting the ball from the tee into the hole with just one stroke.

Subsequent Putt

A putt that follows an initial putt in the game of golf, attempting to get the ball into the hole.

Average Number

The value found by adding all the numbers in a set together and then dividing by the count of those numbers, often used in statistical analysis.

At-bats

A statistical count in baseball that represents the number of times a player gets in position to bat, excluding walks, sacrifices, and certain other situations.