Which of the following statements is false? a. with no debt, the wacc is equal to the unlevered equity cost of capital.*b. with perfect capital markets, a firm's wacc is dependent of its capital structure and is equal to itsequity cost of capital only the firm it is unlevered.*c. as the firm borrows at the low cost of capital for debt, its equity cost of capital rises, but the neteffect is that the firm's wacc is unchanged, in perfect markets. d. although debt has a lower cost of capital than equity, leverage does not lower a firm's wacc inperfect markets

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."