Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. which of the following statements is false? a. fut

which of the following statements is False? A. Future interest payments vary due to changes...

90.2K

Verified Solution

Question

Finance

which of the following statements is False?
A. Future interest payments vary due to changes the firm makes in the amount of debt outstanding, changes in the interest rate on debt, and the risk that the firm may default and fail to make an interest payment.
B. The tax deductability of interest lowers the effective cost of debt financing for the firm
C. The stream of interest payments can be discounted to the present value to determine the interest tax shield, which decreases the value of the firm.
D. When a firm uses debt the interest tax shield peovides corporate tax savings each year, lowering the government's stake in the company.
.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $20,000,000 Fixed assets 70,000,000 Notes...

Finance
Q

Design a second order (two pole) high-pass filter for the following specifications Cut-off frequency, fo or fH...

Electrical Engineering
Q

f(x)=x^3-3x-1=0 x=[0,2] epsilon=5*10^-2 1. perform the bisection method for the root in [0,2] until your root is closer to...

Advance Math
Q

Which of the following provides the best evidence that modern humans are evolving 1 Adult...

Biology
Q

PERDADERNO LONGE GY 182 45 In the shown circuit find the total current through the...

Physics
Q

The volume of a sphere is 5000? m. What is the surface area of the...

Geometry
Q

Brianna's math teacher plots student grades on their weekly quizzes against the number of hours...

Basic Math
Q

Find the inverse of the one to one function f x 8x 8 OA f...

Algebra
Q

Maggie wants to build up the money her bank account. She would like to have...

Algebra
Q

On January 1, 2017, Allan Company bought a 15 percent interest in Sysinger Company. The...

Accounting
Q

Dan and Susan are facing an important decision. After having discussed different financial scenarios, the...

Accounting
Q

Suppose you know that a company's stock currently sells for $68 per share and the...

Finance