Which of the Following Statements Is FALSE

question 23

Multiple Choice

Which of the following statements is FALSE?

• A)Differential access to national capital markets is common enough that it provides the best explanation for the existence of currency swaps,which are like the interest rate swap contracts,but with the holder receiving coupons in one currency and paying coupons denominated in a different currency.
• B)Currency swaps generally also have final face value payments,also in different currencies.
• C)Using a currency swap,a firm can borrow in the market where it has the best access to capital,and then "swap" the coupon and principal payments to whichever currency it would prefer to make payments in.
• D)With differential access to national markets,to maximize shareholder value,the firm should raise capital in the foreign market;the method of valuing the foreign project as if it were a domestic project would then provide the correct NPV.

Understand and classify accounts as assets, liabilities, or owner's equity.

Calculate missing amounts in the accounting equation.

Identify and explain the significance of common business and accounting abbreviations.

Understand the composition of a balance sheet and how to prepare one.

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Definitions:

Dividends Increase

This is when a company decides to increase the amount of money distributed to its shareholders from its earnings.

Annual Dividend

The regular payment made by a corporation to its shareholders, often expressed as a fixed amount per share that is distributed annually.

Downsizing Mode

A corporate strategy involving the reduction of a company's size, typically through layoffs, to reduce costs and improve efficiency.