Which of the Following Statements Is FALSE

question 100

Multiple Choice

Which of the following statements is FALSE?

• A)A project that can be financed with internal funds will be less costly than the same project if it were financed with external funds.
• B)Issuance costs should be treated as cash outflows in NPV analysis.
• C)Issuance costs increase the WACC.
• D)External equity is less expensive than retained earnings.

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Definitions:

Historical Events

Significant occurrences or moments in history that have helped shape human society and the world.

Individualism-collectivism

A cultural dimension that describes the degree to which cultures emphasize the needs and goals of the individual versus those of the group.

Personality Traits

Enduring characteristics that describe an individual’s consistent behaviors, thoughts, and feelings.

Cultural Context

The social, historical, and cultural setting that influences an individual's perceptions, behaviors, and understanding of the world.