Which of the following statements is false? a. in general, the gain to investors from the tax deductibility of interest payments is referred to as theinterest tax shield. b. the interest tax shield is the additional amount that a firm would have paid in taxes if it did not haveleverage. c. because corporations pay taxes on their profits after interest payments are deducted, interestexpenses reduce the amount of corporate tax firms must pay.*d. as modigliani and miller made clear in their original work, capital structure matters in perfect capitalmarkets. thus, if capital structure does not matter, then it must stem from a market imperfection*

Emery pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. emery uses 825 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $48 per order. the cost schedules of two suppliers are as follows: vendor 1 vendor 2 quantity price/lb quantity price/lb 1-499 $17 1-399 $17.10 500-999 $16.75 400-799 $16.85 1000+ $16.50 800-1199 $16.60 1200+ $16.25 (a) what is the economic order quantity for each supplier? (b) what quantity should be ordered and which supplier should be used? (c) the total cost for the most economic order sire is $