Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)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.
• B)A firm's need for outside capital usually ends at the IPO.
• C)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).
• D)When a firm issues shares using an SEO, it follows many of the same steps as for an IPO. The main difference is that a market price for the shares already exists, so the price-setting process is not necessary.

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Definitions:

Average Gradient

The average gradient refers to the rate of elevation change over a particular distance, often used in geographical and hydrological analysis to describe slopes.

Base Level

The lowest point to which erosion by running water can lower the landscape, ultimately the sea level or lake level where rivers end.

Base Level

The lowest point to which a river can erode its channel, often sea level for rivers that flow directly into the oceans, but can be a lake or resistant rock layer for other rivers.

Mouth

The part of a river where it flows into another body of water, such as a lake, sea, or ocean.