Which of the Following Statements Is FALSE

question 57

Multiple Choice

Which of the following statements is FALSE?

• A)Given a 21% corporate tax rate,for every $1 in new permanent debt that the firm issues,the value of the firm increases by $0.79.
• B)The firm's marginal tax rate may fluctuate due to changes in the tax code and changes in the firm's income bracket.
• C)Many large firms have a policy of maintaining a certain amount of debt on their balance sheets.
• D)Typically,the level of future interest payments varies due to changes the firm makes in the amount of debt outstanding,changes in the interest rate on that debt,and the risk that the firm may default and fail to make an interest payment.

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Definitions:

Quantitative Terms

Terms or conditions related to numerical values, such as measurements, quantities, or statistical data.

Executive Summary

A concise document summarizing the key points of a more extensive business report or proposal.

Marketing Plan

A marketing plan outlines an organization's strategy for promoting its products or services, including target market analysis, marketing objectives, and specific campaigns or actions.

Situation Analysis

An assessment process that involves evaluating the internal and external factors affecting an organization's performance to identify potential opportunities and threats.