Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A)If there is uncertainty regarding EBIT,then with a higher interest expense there is a greater risk that interest will exceed EBIT.
• B)Even for a firm with positive earnings,growth will affect the optimal leverage ratio.
• C)From a tax perspective,the firm's optimal level of debt is proportional to its current earnings.
• D)The optimal proportion of debt in the firm's capital structure will be higher,the higher the firm's growth rate.

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Definitions:

Framing

In communication, it involves the construction of a narrative or context that influences perception and interpretation of information.

Media Power

Media Power refers to the influence that media outlets have on public opinion, societal norms, and the policy-making process through the dissemination of information.

Partisan Polarization

The growing ideological distance and political hostility between the major political parties in a political system.

Social Media

Social media encompasses web-based platforms and applications that enable users to create and share content or participate in social networking.