Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)Personal taxes have the potential to offset some of the corporate tax benefits of leverage.
• B)The actual interest tax shield depends on the reduction in the total taxes (both corporate and personal)that are paid.
• C)The amount of money an investor will pay for a security ultimately depends on the benefits the investor will receive-namely,the cash flows the investor will receive before all taxes have been paid.
• D)Just like corporate taxes,personal taxes reduce the cash flows to investors and diminish firm value.

---

Definitions:

Orbicularis Oris

A muscle around the mouth that controls the movements of the mouth and lips, crucial in forming facial expressions and speech.

Eyebrows

The strips of hair growing above the eyes, playing a role in facial expression, communication, and protection of the eyes from sweat and debris.

Buccinators

The buccinator muscles are thin, flat muscles of the cheeks, involved in blowing, sucking actions, and aiding in mastication by pressing the cheeks against the teeth.

Platysma

A thin, superficial muscle located in the neck, responsible for lowering the jaw and drawing the lower lip and corners of the mouth down.