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All of the Following Are TRUE Regarding Long-Term Investments in Any

Question 33

Multiple Choice

All of the following are TRUE regarding long-term investments in any given enterprise EXCEPT


A) only a limited supply of funds is available.
B) the most efficient and profitable companies attract the lowest-cost funds.
C) newer and less prosperous firms must pay higher costs to attract capital.
D) an unlimited supply of funds is available.
E) if companies manage their financial resources wisely, they can reduce the costs of their funds.

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