Which of the Following Statements Is FALSE

question 61

Multiple Choice

Which of the following statements is FALSE?

• A)Once investors know the recap will occur,the share price will rise immediately to a level that reflects the value of the interest tax shield that the firm will receive from its recapitalization.
• B)When securities are fairly priced,the original shareholders of a firm capture the full benefit of the interest tax shield from an increase in leverage.
• C)In the presence of corporate taxes,we do not include the interest tax shield as one of the firm's assets on its market value balance sheet.
• D)We can analyze the recapitalization using the market value balance sheet;it states that the total market value of a firm's securities must equal the total market value of the firm's assets.

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Definitions:

Job Levels

The different ranks or positions within a company that indicate the hierarchy, responsibilities, and usually, compensation ranges.

Skills and Management Inventories

Comprehensive listings or databases of the skills, abilities, and capacities that exist within an organization, used for planning, and managing workforce capabilities efficiently.

Workforce Analysis

The process of examining the current workforce to identify patterns, predict future needs, and align with strategic goals.

Supply of Labour

Refers to the total number of workers available for employment in the job market at a given wage rate.