Which of the Following Statements Is FALSE

question 67

Multiple Choice

Which of the following statements is FALSE?

• A)The value of a firm is equal to the amount of money the firm can raise by issuing securities.
• B)By reducing a firm's corporate tax liability,debt allows the firm to pay more of its cash flows to investors.
• C)Equity investors must pay taxes on dividends but not capital gains.
• D)For individuals,interest payments received from debt are taxed as income.

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Definitions:

Time Frames

Time frames are specified periods during which certain actions are to be undertaken or events are expected to occur.