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:

Ependymal Cells

Glial cells lining the ventricles in the brain and the central canal of the spinal column, involved in producing cerebrospinal fluid.

Neuroglial Cell

Non-neuronal cell in the nervous system that supports, protects, and nourishes neurons; also known as glial cell.

Cuboidal Shape

Describes cells that are roughly cube-shaped, with a width approximately equal to their height.

Neuron

A neuron is a nerve cell that is the fundamental unit of the nervous system, responsible for transmitting information through electrical and chemical signals.