1. a companys market value of equity must always be higher than its book value of equity

true ; false

2. the payback method of evaluating capital projects is widely used even though it does not consider risk or time value of money

true ; false

3. a companys current ratio must be always equal or exceed its quick ratio

true ; false

4. interest expense is an important element in calculating the free cash flow for a proposed project

true; false

5. the annual returns earned on US government bonds never exceed the returns earned by holding stocks for any given year

true ; false