Which of the Following Statements Is False

question 76

Multiple Choice

Which of the following statements is false?

• A) To determine the true tax benefit of leverage, we need to evaluate the combined effect of both corporate and personal taxes.
• B) A personal tax disadvantage for debt causes the WACC to decline more slowly with leverage than it otherwise would.
• C) Personal taxes have an indirect effect on the firm's weighted average cost of capital.
• D) In the United States and many other countries, capital gains from equity have historically been taxed more heavily than interest income.

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Definitions:

Procedural Knowledge

Knowledge of how to perform tasks or processes, often contrasted with declarative knowledge, which involves knowing 'what' rather than 'how'.

Online Methods

Digital techniques or platforms used for various purposes including education, research, communication, and transaction.

Classroom Instruction

A method of teaching provided by a teacher to students within a classroom setting, focusing on delivering knowledge or skills.

Contiguity Principle

A concept in education psychology suggesting that the closer in time two events are, the stronger the association between them.