A Change in the Company's Capital Structure Will Change the Amount

question 44

True/False

A change in the company's capital structure will change the amount of taxes paid but will not change the WACC.
FALSE

---

Definitions:

Independent Evidence

Information or proof that supports a claim, separate from and not relying on other pieces of evidence.

Five-Factor Model

A theory identifying five basic personality traits, including openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

Extraversion is a personality trait characterized by energy creation from external sources, often involving enthusiasm for socializing and engaging in activities with others.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, and a higher propensity for psychological stress.