Which of the Following Statements Is FALSE

question 33

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

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Definitions:

Emotional Intelligence

The ability to identify, assess, and control the emotions of oneself, of others, and of groups.

Competencies

Refers to the skills, knowledge, and abilities that are required for the successful performance of a job or task.

Behavioral Component

Refers to the actions or observable responses of a person associated with an attitude, belief, or knowledge.

Intention

A mental state that represents a commitment to carrying out an action or actions in the future.