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.

---

Definitions:

Pollution Control

Strategies and measures implemented to reduce or eliminate the emission of pollutants into the environment.

Threatened Regulation

When businesses or industries adjust their practices in anticipation of potential government regulations that could impact their operations.

Enlightened Self-interest

A philosophy or behavior motivated by understanding that one's own best interest is served by acting in the best interest of others or a community.

Societal Problems

Issues and challenges that affect individuals within a society broadly, often requiring collective efforts for resolution.