Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)Unlike taxes on capital gains or interest income,which are paid annually,taxes on dividends are paid only at the time the investor sells the stock.
• B)Deferring the payment of capital gains taxes lowers the present value of the taxes,which can be interpreted as a lower effective capital gains tax rate.
• C)Investors with longer holding periods or with accrued losses face a lower tax rate on equity income,decreasing the effective tax advantage of debt.
• D)Investors with accrued losses that they can use to offset gains face a zero effective capital gains tax rate.

---

Definitions:

All-you-can-eat Buffets

Dining establishments that offer customers the opportunity to consume as much food as they desire for a single fixed price.

Heavier Cars

Refers to automobiles with greater mass, which may have implications for fuel efficiency, safety, and dynamics.

Monitoring

The act of overseeing or checking on the progress or quality of a project, process, or performance of employees systematically.

Screening

The process of evaluating or analyzing something to determine its suitability, quality, or condition, often before further consideration or involvement.