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:

Testing Perspective

In psychology, it involves understanding individual differences and cognitive abilities through standardized tests and assessments.

Dealing Effectively

The ability to manage situations or tasks successfully and efficiently.

Novelty

The quality of being new, original, or unusual, often stimulating interest, attention, or excitement.

Subtheory

A division or smaller theory that is part of a larger theoretical framework, often focusing on a specific aspect of the broader theory.