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.

---

Definitions:

Moral Development Theory

A framework that explores the evolution of an individual's understanding of morality, often associated with Lawrence Kohlberg's stages of moral reasoning.

African Americans

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.

Elderly Persons

Individuals who are significantly past the usual age of retirement, often considered to be ages 65 and older, with specific social, health, and economic implications.

Respect

A feeling of deep admiration for someone or something elicited by their abilities, qualities, or achievements.