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:

Teratogen

An agent or factor that causes malformation of an embryo or fetus.

Placenta

A critical organ in mammalian embryos, linking the mother to the fetus, it facilitates the exchange of nutrients, waste, and gases.

Zinc

A chemical element with symbol Zn and atomic number 30, necessary for human health and involved in numerous bodily processes.

Cobalt

Cobalt is a chemical element with the symbol Co and atomic number 27, used in alloys, batteries, and as a pigment for its distinctive blue color.