Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)More often than not,firms return to the equity markets and offer new shares for sale,a type of offering called a seasoned equity offering (SEO).
• B)Usually,profitable growth opportunities occur throughout the life of the firm,and in some cases,it is not feasible to finance these opportunities out of retained earnings.
• C)When a firm issues stock using an SEO,it follows many of the same steps as for an IPO.The main difference is that a market price for the stock already exists,so the price-setting process is not necessary.
• D)A firm's need for outside capital usually ends at the IPO.

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Definitions:

Total Costs

The aggregate amount of all expenses associated with the production of a good or the operation of a business.

Larger Firms

Companies or businesses that employ a large number of workers and typically have a substantial volume of business operations and market influence.

Health Insurance

A form of insurance coverage that pays for an individual's or group's medical and surgical expenses or reimburses losses from sickness.

Noncontingent Basis

A situation or condition not dependent on certain events, conditions, or actions in order to occur or be valid.