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Which of the Following Statements Is FALSE

Question 106

Multiple Choice

Which of the following statements is FALSE?


A) The relative proportions of debt, equity, and other securities that a firm has outstanding constitute its capital structure.
B) The most common choices are financing through equity alone and financing through a combination of debt and equity.
C) A project's net present value (NPV) represents the value to the new investors of a firm created by the project.
D) When corporations raise funds from outside investors, they must choose which type of security to issue.

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