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    Fundamentals of Corporate Finance Study Set 7
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    Exam 14: Introduction to Corporate Financing and Governance
  5. Question
    To State That Financing at Current Market Terms Is a Zero-NPV
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To State That Financing at Current Market Terms Is a Zero-NPV

Question 1

Question 1

Multiple Choice

To state that financing at current market terms is a zero-NPV transaction indicates that:


A) firms should avoid these methods of financing.
B) there is no cost involved in the financing.
C) the market has not set financing terms correctly.
D) there are no "bargains" when financing at current terms.

Correct Answer:

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