Which of the following statements is FALSE?
A)Depreciation expenses have a positive impact on free cash flow.
B)Free Cash Flow = (Revenues - Costs - Depreciation)× (1 - τc)- Capital Expenditures - ΔNWC + τc × Depreciation.
C)The firm cannot use its earnings to buy goods,pay employees,fund new investments,or pay dividends to shareholders.
D)The depreciation tax shield is the tax savings that results from the ability to deduct depreciation.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is FALSE?
A)Depreciation expenses have a positive impact on free cash flow.
B)Free Cash Flow = (Revenues - Costs - Depreciation)× (1 - τc)- Capital Expenditures - ΔNWC + τc × Depreciation.
C)The firm cannot use its earnings to buy goods,pay employees,fund new investments,or pay dividends to shareholders.
D)The depreciation tax shield is the tax savings that results from the ability to deduct depreciation.

Which of the Following Statements Is FALSE