Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)The data show a clear preference for equity as a source of external financing for the total population of U.S.firms.
• B)Debt as a fraction of firm value has varied in a range from 30-45% for the average firm.
• C)Capital expenditures greatly exceed firms' external financing,implying that most investment and growth is supported by internally generated funds,such as retained earnings.
• D)Firms in growth industries like biotechnology or high technology carry very little debt,whereas airlines,auto makers,utilities,and financial firms have high leverage ratios.

Understand the impact of changes in the discount rate on the present value of future cash flows.

Calculate the present value of annuities and lease payments under different interest rates.

Determine the guaranteed rate of return on an investment given the investment amount and withdrawal plan.

Understand and apply the concept of net present value in evaluating investment projects.

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Definitions:

Play Therapy

A therapeutic approach primarily used with children to help them express their feelings, experiences, and cognitive development through play.

Maltreated Child

A child who has experienced abuse, neglect, or other forms of maltreatment by a caregiver or significant adult.

Risk Assessment

The process of identifying, evaluating, and estimating the levels of risk involved in a situation, followed by the prioritization of risks based on the impact they might have.

Social Work

A profession concerned with helping individuals, families, groups, and communities to enhance their well-being and solve personal and societal problems.