Which of the Following Statements Is Correct for a Firm

question 95

Multiple Choice

Which of the following statements is correct for a firm in which depreciation expense exceeds EBIT (Operating Income) ? The firm:

• A)will have a net loss.
• B)will have no income-tax liability.
• C)needs to lower its interest expense.
• D)can still have a positive net income.

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Definitions:

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