Which of the Following Statements Is FALSE

question 35

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)The project's net present value (NPV)represents the value to the new investors of the firm created by the project.
• D)When corporations raise funds from outside investors,they must choose which type of security to issue.

---

Definitions:

Decision Maker

An individual or group responsible for making choices that will impact the organization.

Visuals

Graphic elements such as charts, graphs, and images used in communication materials to supplement text, making information easier to understand and more engaging.

Tables

A systematic arrangement of data in rows and columns for easy reference and analysis.

Pie Graph

A circular chart divided into sectors, each representing a proportion of the whole.