Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) Given a 35% corporate tax rate, for every $1 in new permanent debt that the firm issues, the value of the firm increases by $0.65.
• B) The firm's marginal tax rate may fluctuate due to changes in the tax code and changes in the firm's income bracket.
• C) Many large firms have a policy of maintaining a certain amount of debt on their balance sheets.
• D) Typically, the level of future interest payments varies due to changes the firm makes in the amount of debt outstanding, changes in the interest rate on that debt, and the risk that the firm may default and fail to make an interest payment.

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Definitions:

Intersender Role Conflict

Two or more role senders provide a role occupant with incompatible expectations.

Social Organization

The structured arrangement of relationships and roles within a group or society that dictates how they interact and work together to achieve communal goals.

Higher Status

A position that ranks above others in a given context, often associated with greater authority, respect, or value.

Reward Allocation Norm

Refers to the standards or criteria used to distribute rewards or outcomes among members of a group or organization, based on their contributions or performance.