Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)Personal taxes have the potential to offset some of the corporate tax benefits of leverage.
• B)The actual interest tax shield depends on the reduction in the total taxes (both corporate and personal)that are paid.
• C)The amount of money an investor will pay for a security ultimately depends on the benefits the investor will receive-namely,the cash flows the investor will receive before all taxes have been paid.
• D)Just like corporate taxes,personal taxes reduce the cash flows to investors and diminish firm value.

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Definitions:

Intranet

A private network accessible only by an organization's staff, often used to share information, operational systems, or computing services within the organization.

Extranet

A private network that uses Internet technology and public telecommunication systems to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses.

Enterprise Network

An organization’s network, which is composed of interconnected multiple LANs and WANs.

Traditional Network

A communication framework that relies on physical infrastructure and basic software for connectivity and data transfer among users.