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

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

image text in transcribed
Which of the following statements is FALSE? 0 A. Because Corporations pay taxes on their prots alter interest payments are deducted. interest expenses reduce the amount of corporate 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 imperfection. O D. The interesttaxshield is the additional amount thata rm would have paid in taxes if it did not have leverage

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