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:

Registers Fear

The act of displaying or recognizing signs of fear.

Personal Perspective

An individual’s unique point of view influenced by personal experiences, beliefs, values, and emotions.

Reflective

Characterized by deep thought and consideration, often involving the examination of one's own beliefs, thoughts, and experiences.

Coordinated Thought

The ability to integrate different ideas, perspectives, or pieces of information in a cohesive manner, leading to more complex reasoning and problem-solving skills.