Which of the following statements is falsea while marginal, Ask an Expert

Finance

Which of the following statements is false?

a. While marginal and average tax rates often differ, it is the marginal tax rate that is relevant for most financial decisions.

b. Book value is an accounting summary of value and is inferior to market value as a source of current information regarding the true value of the firm.

c. Market value always less than book value.

d. Financial managers should rely on market values, and not book values, when making decisions for the firm’s strategic direction.

e. The cash flow identity states that all net cash flows earned by the firm are distributed in whole to its creditors and shareholders.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91726289

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