Which of the Following Statements Is FALSE

question 103

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Rapport

A positive relationship or connection between people, characterized by mutual understanding, trust, and harmony.

Motivation

The psychological force that drives individuals to pursue goals, perform tasks, or engage in behaviors.

Closing

The act of concluding or finishing an activity, meeting, or document, often implying the formal cessation of proceedings.

Open Ended Question

A type of question that allows for a broad range of responses, facilitating more in-depth and elaborate answers.