Question

Which of the following statements is FALSE?A. While the book value of equity can be negative, the market value of equity cannot be negative.B. On the income statement, financial analysts often focus on a company's EBIT, and items above this line depend on the company's long-term financing choices among debt and equity.C. The average tax rate is always less than or equal to, and often considerably less than, the marginal tax rate.D. Managers should use the marginal tax rate when making decisions regarding new investments and financing choices.

Answer 1

Answer:

B. On the income statement, financial analysts often focus on a company's EBIT, and items above this line depend on the company's long-term financing choices among debt and equity

Explanation: