Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
New Topic  
johnpaech johnpaech
wrote...
Posts: 1098
Rep: 7 0
6 years ago
Which of the following statements is FALSE?
A) To determine the benefit of leverage for the value of the firm, we must compute the present value of the stream of future interest tax shields the firm will receive.
B) Because the cash flows of the levered firm are equal to the sum of the cash flows from the unlevered firm plus the interest tax shield, by the Law of One Price the same must be true for the present values of these cash flows.
C) By increasing the amount paid to debt holders through interest payments, the amount of the pre-tax cash flows that must be paid as taxes increases.
D) When a firm uses debt, the interest tax shield provides a corporate tax benefit each year.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 82 times
2 Replies
Replies
Answer verified by a subject expert
anicidanicid
wrote...
Top Poster
Posts: 694
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

johnpaech Author
wrote...
6 years ago
You took a load off my back, thanks for answering correctly
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1697 People Browsing
Related Images
  
 3582
  
 420
  
 410
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 436

Previous poll results: Do you believe in global warming?