Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)To determine the true tax benefit of leverage,we need to evaluate the combined effect of both corporate and personal taxes.
• B)A personal tax disadvantage for debt causes the WACC to decline more slowly with leverage than it otherwise would.
• C)Personal taxes have an indirect effect on the firm's weighted average cost of capital.
• D)In the United States and many other countries,capital gains from equity have historically been taxed more heavily than interest income.

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Definitions:

Prolactin

Hormone of the adenohypophysis that stimulates the production of milk.

Oxytocin

A hormone released by the pituitary gland that causes increased contraction of the uterus during labor and stimulates the ejection of milk into the ducts of the breasts.

Uterine Smooth Muscle

The muscle tissue in the uterus, responsible for the contractions during menstruation and childbirth.

Digestive System

A group of organs working together to convert food into energy and basic nutrients to feed the entire body.