Check all that apply: The market for non-financial liabilities is perfect. Non-financial liabilities are sometimes a cheaper source of financing than financial liabilities. We should include low-cost non-financial liabilities in the analysis of a projec they are only available with that project. Managers can evaluate project and financing choices separately for non- financial claims.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 2E
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Which statements are true about non-financial liabilities in a perfect capital
market?
Check all that apply:
O The market for non-financial liabilities is perfect.
Non-financial liabilities are sometimes a cheaper source of financing than
financial liabilities.
We should include low-cost non-financial liabilities in the analysis of a project if
they are only available with that project.
O Managers can evaluate project and financing choices separately for non-
financial claims.
Transcribed Image Text:Which statements are true about non-financial liabilities in a perfect capital market? Check all that apply: O The market for non-financial liabilities is perfect. Non-financial liabilities are sometimes a cheaper source of financing than financial liabilities. We should include low-cost non-financial liabilities in the analysis of a project if they are only available with that project. O Managers can evaluate project and financing choices separately for non- financial claims.
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