Financing decisions differ from investment decisions because
I.financing decisions are easier to reverse;
II.markets for financial assets are generally more competitive than real asset markets;
III.generally, financing decisions have NPVs very close to zero
A)I only
B)I and II only
C)I, II, and III
D)II and III only

Question

Quizplus · Accepted Answer

Financing decisions are often easier to reverse than investment decisions, financial markets are typically more competitive than markets for real assets, and financing decisions usually have NPVs close to zero because they involve trading in efficient markets.

Financing Decisions Differ from Investment Decisions Because