Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A)The WACC can be used throughout the firm as the company wide cost of capital for new investments that are of comparable risk to the rest of the firm and that will not alter the firm's debt-equity ratio.
• B)A disadvantage of the WACC method is that you need to know how the firm's leverage policy is implemented to make the capital budgeting decision.
• C)The intuition for the WACC method is that the firm's weighted average cost of capital represents the average return the firm must pay to its investors (both debt and equity holders)on an after-tax basis.
• D)To be profitable,a project should generate an expected return of at least the firm's weighted average cost of capital.

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Definitions:

Table Design View

A feature in database software that allows users to define and modify the structure of a table, including fields and data types.

Save The Table

The action of saving the current state and data of a table in a database or spreadsheet to preserve data integrity and changes.

Set Other Properties

The action or process of configuring additional, less commonly adjusted attributes or settings of software components or hardware devices.

Access Report

A tool within Microsoft Access that displays data from a database in a format suitable for printing or sharing.