Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A)If there is uncertainty regarding EBIT,then with a higher interest expense there is a greater risk that interest will exceed EBIT.
• B)Even for a firm with positive earnings,growth will affect the optimal leverage ratio.
• C)From a tax perspective,the firm's optimal level of debt is proportional to its current earnings.
• D)The optimal proportion of debt in the firm's capital structure will be higher,the higher the firm's growth rate.

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Definitions:

Hard Work

Exerting a significant amount of effort and dedication toward completing tasks or achieving goals.

Goals

Targets or outcomes that individuals or organizations aim to achieve within a specific timeframe.

Achievable

Referring to goals or tasks that are possible to complete or attain with effort.

Organizational Justice

The perception of fairness in the workplace, including fair treatment, distribution of resources, and information sharing.