Which of the Following Statements Is FALSE

question 49

Multiple Choice

Which of the following statements is FALSE?

• A)The money taken in by the firm as a result of the share issue exactly offsets the dilution of the shares.
• B)Most analysts prefer to use performance measures and valuation multiples that are based on the firm's earnings before interest has been deducted.
• C)Because the firm's earnings per share and price-earnings ratio are affected by leverage implies that we can always reliably compare these measures across firms with different capital structures.
• D)In general,as long as the firm sells the new shares of equity at a fair price,there will be no gain or loss to shareholders associated with the equity issue itself.

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Definitions:

Late Maturation

The condition of experiencing the physical, psychological, and behavioral changes associated with becoming mature later than the average among peers.

Sociohistorical Context

The social, cultural, and historical influences that shape behaviors, beliefs, and conditions at a given time or over time.

Superego

In psychoanalytic theory, the part of the personality that represents the internalized ideals and provides standards for judgment.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.