Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) The value of a firm is equal to the amount of money the firm can raise by issuing securities.
• B) By reducing a firm's corporate tax liability, debt allows the firm to pay more of its cash flows to investors.
• C) Equity investors must pay taxes on dividends but not capital gains.
• D) For individuals, interest payments received from debt are taxed as income.

---

Definitions:

Unbiased Estimators

Statistical estimators that, on average, hit the true parameter value of a population, not systematically overestimating or underestimating it.

Variance

A statistical measure of the distribution's spread, variance quantifies how much the numbers in a data set differ from the mean (or average) of that set.

Relatively More

A comparative term indicating a greater amount, number, or degree in comparison to another or others.

Electronegativity

A measure of the tendency of an atom to attract a bonding pair of electrons.