Which of the Following Statements Is FALSE

question 24

Multiple Choice

Which of the following statements is FALSE?

• A)Because only the tax consequences of depreciation are relevant for free cash flow,we should use the depreciation expense that the firm will use for tax purposes in our free cash flow forecasts.
• B)A firm generally identifies its marginal tax rate by determining the tax bracket that it falls into based on its overall level of pre-tax income,though C-corporations only have a single tax rate as a result of the Tax Cuts and Jobs Act of 2017.
• C)Free Cash Flow = (Revenues - Costs)× (1 - τc)- Capital Expenditures - ΔNWC + τc × Depreciation.
• D)Net working capital is found by subtracting current assets from current liabilities.

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Definitions:

Painful Event

An occurrence that causes significant emotional, physical, or psychological distress to an individual.

Shocking Event

An occurrence that is surprising, unsettling, or disturbing to the public or an individual, often leading to widespread reaction or change.

Ethnocentric Bias

The tendency to view other cultures from the perspective of one's own, often leading to misinterpretation or judgment based on one's own cultural standards.

Hawaiian Language

A Polynesian language that is the indigenous language of the Native Hawaiian people and an official language of the State of Hawaii.