Which of the Following Statements Is FALSE

question 103

Multiple Choice

Which of the following statements is FALSE?

• A) Issuance costs increase the WACC.
• B) External equity is less expensive than retained earnings.
• C) A project that can be financed with internal funds will be less costly than the same project if it were financed with external funds.
• D) Issuance costs should be treated as cash outflows in NPV analysis.

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Definitions:

Standard of Care

A legal benchmark requiring individuals to exercise reasonable care and skill when performing actions that could foreseeably harm others.

Occupier

An individual or group that resides in or takes possession of a particular place or property.

Property

Legal rights over assets, tangible or intangible, that allow the owner to use, enjoy, and dispose of these assets.

Legal Position

An individual's or entity's rights, responsibilities, and standing under the law.