Question

Can you please explain WHY the following statement is TRUE or FALSE The specific impact of...

Can you please explain WHY the following statement is TRUE or FALSE

The specific impact of changes in depreciation expenses on FCF can be discerned by multiplying the incremental depreciation expense by the tax rate.

Homework Answers

Answer #1

The given statement is TRUE because when there would be depreciation impact on free cash flow, it will be generally increasing the free cash flows because depreciation is always added to the operating income and it will be helping in increasing the free cash flows by multiplying the amount of depreciation with the corporate tax rate as depreciation is also not taxable so it will be helping in order to identify the impact of change in depreciation expenses on free cash flows

The given statement is TRUE.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For the following questions label each statement as True or False and explain why you choose...
For the following questions label each statement as True or False and explain why you choose your answer. True or False   Economics is a business discipline that studies how firms can maximize profits. 2. True or False When the price of an item increases it means that the supply of the item has fallen
Is the statement true or false? Ans explain why the statement is true or false. Assume...
Is the statement true or false? Ans explain why the statement is true or false. Assume a firm’s marginal costs of pollution control can be expressed as MC = 10Q where Q is the units of pollution controlled. In addition, assume the firm is currently emitting 25 units of pollution per time period, Q = 0, and the government has decided to impose a tax of $20 on each unit of pollution emitted by the firm. The optimal level of...
Please write whether the statement is true or false, and if false please explain why it...
Please write whether the statement is true or false, and if false please explain why it is. “The more charges you put together in a region of space, the stronger the electric field gets.” “Electric field vectors never cross.” “Electric field lines always have to be straight.” “Electric field vectors always have to be straight.” “The motion of a charged particle in a uniform electric field is always a straight line.” “A charged particle in an electric field always moves...
My quastion is below, can you please explain why ? thank you. True or false: The...
My quastion is below, can you please explain why ? thank you. True or false: The hydration process of a soluble ionic compound always decreases the entropy of water.
Determine whether the following statement is true or false and then explain why in one or...
Determine whether the following statement is true or false and then explain why in one or two sentences All 2nd- messengers are H2O-soluble and can diffuse freely through the solution of the cytosol.
Are the following statements true or false? Please explain why it's true or false as well....
Are the following statements true or false? Please explain why it's true or false as well. For a normally distributed random variable, P(X > µ) = .5 Independent variables may be linearly related
Determine whether the following statement is true or false and then explain why in one or...
Determine whether the following statement is true or false and then explain why in one or two sentences. The membrane potential results from charges moving across the membrane that has a very small effect on the concentrations of the ions, and as a result there is only a very minor difference in the number of negative and positive ions on each side of the membrane. Determine whether the following statements are true or false and then explain why in one...
Please CLEARLY indicate if the following statement is TRUE or FALSE: “The multinational enterprises created through...
Please CLEARLY indicate if the following statement is TRUE or FALSE: “The multinational enterprises created through Foreign Direct Investment use local suppliers and this is their advantage.” Please indicate clearly your answer (true/false). And then please kindly explain why. Do not provide general definitions of concepts and irrelevant information. If you already advised me on this question, please ignore it as I’m looking for a second opinion.
Is this statement true or false? Explain why the statement is true or false. Two firms,...
Is this statement true or false? Explain why the statement is true or false. Two firms, 1 and 2, can control their emissions of a pollutant according to the following marginal cost equations: MC1 = $1*q1 and MC2 = $1/2*q2, where q1 and q2 are the amount of emissions controlled by firm 1 and firm 2, respectively. In addition, each firm is currently emitting 100 units of pollution and neither firm is controlling its emissions. Assuming the control authority has...
Is the following statement true? Every tissue that can be renewed is renewed from a tissue-specific...
Is the following statement true? Every tissue that can be renewed is renewed from a tissue-specific population of stem cells. Explain why or why note.