Which of the Following Statements Is FALSE

question 31

Multiple Choice

Which of the following statements is FALSE?

• A) Given a forecast of future interest payments, we can determine the interest tax shield and compute its present value by discounting it at a rate that corresponds to its risk.
• B) The total value of the unlevered firm exceeds the value of the firm with leverage due to the present value of the tax savings from debt.
• C) To compute the increase in the firm's total value associated with the interest tax shield, we need to forecast how a firm's debt-and therefore its interest payments.
• D) There is an important tax advantage to the use of debt financing.

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Describing an organism or entity composed of only one cell, often referring to unicellular microorganisms.

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A common space, whether physical or virtual, where individuals can come together to discuss and express opinions on various topics.

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A message in which basic information conveyed is negative; the reader is expected to be disappointed or angry.