Question: Seeking help on my homework for class as I am having issues. Thank you Whiol'l of the following statements is FALSE? 0 A. Because Corporations

Seeking help on my homework for class as I am having issues. Thank you

Whiol'l of the following statements is FALSE? 0 A. Because Corporations pay taxes on their prots after interest payments are deducted. interest expenses reduce the amount of mrporate tax rms must pay. 0 B. In general, the gain to investors from the tax deductibility of interest payments is referred to as the interest tax shield. O 0. As Modigliani and Miller made clear in their original work, capital structure matters in perfect capital markets. Thus. it capital structure does not matter, then it must stem from a market im perfection. O D. The interest taxshield is the additional amount that a rm would have paid in taxes if it did not have leverage
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
