Which of the Following Statements Is FALSE

question 1

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 - τ_c)- Capital Expenditures - ΔNWC + τ_c × 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.

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Definitions:

Business Practice

A method, procedure, or routine used in the conduct of an organization's operations to achieve its objectives.

Share Information

The practice of exchanging data, knowledge, or insights between individuals, organizations, or systems to facilitate understanding, collaboration, or decision-making.

Benefit of All

The phrase "benefit of all" typically refers to actions, policies, or conditions that are advantageous or favorable for everyone involved or affected.

Vendor

An entity that provides goods or services to another company, often within a business-to-business (B2B) relationship.