Which of the Following Statements Is False

question 18

Multiple Choice

Which of the following statements is false?

• A)If there is only one market interest rate,then the value of the company and the wealth of its shareholders are independent of the company's capital structure.
• B)If any one point on a market opportunity line is attainable,then all other points on the line are also attainable by borrowing or lending.
• C)The dividend decision does not affect shareholders' wealth,provided that the company does not alter its investment decision.
• D)None of the given options.

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Definitions:

Property Taxes

Taxes paid by property owners, based on the value of their property, to fund public services.

Depreciation Charges

The allocation of the cost of a tangible asset over its useful life for tax and accounting purposes.

Depreciation Conventions

Methods established by tax authorities to determine how much depreciation expense can be deducted, and when, for tax purposes.

Taxable Income

The portion of an individual's or entity's income that is subject to income tax after adjustments, deductions, and exemptions are accounted for.