The Tax-Shield Approach Is Used for Calculating OCF, If the Only

question 112

True/False

The tax-shield approach is used for calculating OCF, if the only information from the statement of comprehensive income items known to you are net income and depreciation.

---

Definitions:

Gestalt Psychology

A theory of mind that proposes humans naturally perceive objects as organized patterns and wholes, rather than as separate components.

Principle of Similarity

A concept from Gestalt psychology that states individuals tend to perceive elements as grouped together if they are similar to each other in shape, color, size, or other attributes.

Physical Characteristics

The observable attributes or features of an object, person, or place.

Price Leadership

A situation in which the leading company in a market sets the price of goods or services, and other companies in the market follow suit.