Which of the Following Statements Is False

question 32

Multiple Choice

Which of the following statements is false?

• A) We begin the capital budgeting process by determining the incremental earnings of a project.
• B) The marginal corporate tax rate is the tax rate the firm will pay on an incremental dollar of pre-tax income.
• C) Investments in plant, property, and equipment are directly listed as expenses when calculating earnings.
• D) The opportunity cost of using a resource is the value it could have provided in its best alternative use.

---

Definitions:

Common Stock

Common stock is a type of security that represents ownership in a corporation, with holders usually having voting rights and receiving dividends.

Oil Exploration

The process of searching for oil and gas reservoirs beneath the Earth's surface, often involving geophysical surveys and drilling activities.

Investment

Refers to the act of allocating resources, usually money, with the expectation of generating an income or profit.

Installment Note

A loan that requires regular payments, or installments, which cover both principal and interest over a set period of time.