Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)As long as the firm's choice of securities does not change the cash flows generated by its assets,the capital structure decision will not change the total value of the firm or the amount of capital it can raise.
• B)If securities are fairly priced,then buying or selling securities has a net present value (NPV)of zero and,therefore,should not change the value of a firm.
• C)The future repayments that the firm must make on its debt are equal in value to the amount of the loan it receives up front.
• D)An investor who would like more leverage than the firm has chosen can lend and add leverage to his or her own portfolio.

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Definitions:

Trial Close

A sales technique where the salesperson asks the prospect a question or series of questions to gauge the prospect's readiness to buy.

Buyer's Readiness

The stages a potential customer goes through before deciding to purchase a product, including awareness, knowledge, liking, preference, conviction, and purchase.

Team Selling

A sales strategy where a group of individuals with different expertise collaborates to sell a product or service to better meet customer needs.

New-Customer Acquisition

The process of attracting and converting prospects into new customers for a business.