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:

WindowAdapter

An abstract adapter class for receiving window events, allowing its subclasses to override only the methods they are interested in.

MouseAdapter

A MouseAdapter in Java is an abstract adapter class used to receive mouse events, allowing the programmer to handle only the needed mouse events without implementing all mouse listener methods.

Class

A blueprint in object-oriented programming that defines a new data type including its data structure and the operations that can be performed on it.

Throwable

The superclass of all errors and exceptions in the Java language, providing a mechanism for handling error and exception conditions in a unified way.