Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)The actual return kept by an investor will depend on how the interest is taxed.
• B)The equivalent after-tax interest rate is r(1 - τ).
• C)The highest interest rate,for a given horizon,is the rate paid on U.S.Treasury securities.
• D)It is important to use a discount rate that matches both the horizon and the risk of the cash flows.

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Definitions:

Additional Worker

An employee added to the workforce, often to address increased demand or enhance productivity.

Profit-Maximizing

The method or approach through which a company decides on the pricing and production quantity that yields the highest profit.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource or factor of production.

Wage Rate

The amount of compensation a worker receives per unit of time or per task performed, often expressed as an hourly rate or salary.