Which of the Following Statements Is False

question 10

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 Canada and many other countries, capital gains from equity have historically been taxed more heavily than interest income.

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Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain, down the back, and transmits nerve signals between the brain and the body.

Brain

A complex organ of the central nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognitive abilities such as thought and emotion.

Neuron

A specialized cell of the nervous system responsible for transmitting information throughout the body in the form of electrical and chemical signals.

Nerve Cell

Also known as a neuron, it is the fundamental unit of the nervous system responsible for transmitting information throughout the body via electrical and chemical signals.