Which of the Following Statements Is FALSE

question 69

Multiple Choice

Which of the following statements is FALSE?

• A)Depreciation expenses have a positive impact on free cash flow.
• B)Free Cash Flow = (Revenues - Costs - Depreciation)× (1 - τc)- Capital Expenditures - ΔNWC + τc × Depreciation.
• C)The firm cannot use its earnings to buy goods,pay employees,fund new investments,or pay dividends to shareholders.
• D)The depreciation tax shield is the tax savings that results from the ability to deduct depreciation.

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Definitions:

Xylem

The vascular tissue in plants that conducts water and dissolved nutrients upward from the root and helps form the woody element in the stem.

Dissolved Sugars

Sugars that have been dissolved in a solvent, often water, making them an important energy source for organisms at the cellular level.

Stomata

Small openings on the surfaces of leaves and stems through which gases and water vapor pass.

Companion Cells

Plant cells that are part of the phloem tissue and assist in the distribution of nutrients throughout the plant.