Which of the Following Statements Is False

question 15

Multiple Choice

Which of the following statements is false?

• A) Because only the tax consequences of depreciation are relevant for free cash flow, we should use the depreciation expense that the firm will use for tax purposed in our free cash flow forecasts.
• B) A firm generally identifies its marginal tax rate by determining the tax bracket that it falls into based on its overall level of pre-tax income.
• C) Free Cash Flow = (Revenues - Costs) × (1 - τ_c) - Capital Expenditures - ΔNWC + τ_c × Depreciation.
• D) Net working capital is the difference between current liabilities and current assets.

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Definitions:

Solid Body Parts

Structures in the body that consist of dense tissues and organs, excluding fluids and hollow spaces.

Positively or Negatively Charged

Describes an object or entity that has an electric charge, positive if it has more protons than electrons, and negative if it has more electrons than protons.

Released by Electrolytes

Pertains to substances that dissociate into ions in solution, thereby becoming capable of conducting electricity; the process of releasing ions or charged particles.

Charged Particles

Particles with either a positive or negative electrical charge, which include ions and electrons.