Assume both current and deferred taxes are positive values

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1. Assume both current and deferred taxes are positive values. Given this, deferred taxes will

A. reduce the current tax expense and thus increase net income.

B. increase expenses and increase operating cash flows.

C. increase expenses and lower operating cash flows.

D. reduce net income but not affect the operating cash flows.

E. reduce both net income and operating cash

2. True or False: Firms have an optimal capital structure. Explain your answer

3. (a) What does it mean for taxes to be due in arrears? (b) Are taxes due in arrears in Florida? (c) Are taxes due in arrears in all states?

Reference no: EM132014626

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