Which of the Following Statements Is FALSE

question 67

Multiple Choice

Which of the following statements is FALSE?

• A) Because only the tax consequences of depreciation are relevant for free cash flow, we should use the depreciation expense that the firm will use for tax purposed in our free cash flow forecasts.
• B) A firm generally identifies its marginal tax rate by determining the tax bracket that it falls into based on its overall level of pre-tax income.
• C) Free Cash Flow = (Revenues - Costs) × (1 - τ_c) - Capital Expenditures - ΔNWC + τ_c × Depreciation.
• D) Net working capital is the difference between current liabilities and current assets.

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Definitions:

Weapons Effect

The phenomenon where the mere presence of a weapon can increase aggression in individuals.

Narcissism

A personality trait characterized by an inflated sense of self-importance and a deep need for admiration and attention.

Grandiose View

An exaggerated self-perception of being superior, unique, or exceptional, often seen in narcissistic personality traits.

Self-awareness

Acquaintance with oneself, including character attributes, emotional experiences, underlying motivations, and personal wishes.