The claims of the equityholders on a firm's assets have priority over the claims of creditors because the equityholders are the owners of the firm
Indicate whether the statement is true or false
FALSE
You might also like to view...
A work center is ______.
A. a part of a production facility where all activities related to particular phase of the production process (such as assembly, milling, and grinding) are performed B. where repetitive activities related to production are performed C. the location within a production facility where high-skilled workers complete a specific task in production D. the central area in a production facility for planning work requirements
Which of the following is not one of the aspects of expectancy theory?
a. Introduces a cognitive aspect of motivation. b. It suggests that motivation involves not just the individual but also opportunities, rewards, and incentives. c. It reminds us different people have the same skills and abilities. d. It reminds us that people will tend to exert more effort in those areas where they believe they are more likely to perform well.
_____ occurs when consumers remember only information that supports their personal feelings or beliefs.
A. Intermittent reinforcement B. Selective exposure C. Selective retention D. Faulty selectivity E. Selective distortion
Which of the following statements is FALSE?
A) A firm's weighted average cost of capital, denoted rwacc, is the cost of capital that reflects the risk of the overall business, which is the combined risk of the firm's equity and debt. B) Intuitively, the difference between the discounted free cash flow model and the dividend-discount model is that in the divided-discount model, a firm's cash and debt are included indirectly through the effect of interest income and expenses on earnings in the dividend-discount model. C) We interpret rwacc as the expected return a firm must pay to investors to compensate them for the risk of holding the firm's debt and equity together. D) When using the discounted free cash flow model, we should use a firm's equity cost of capital.