1. As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain

2. Discuss two simplifying assumptions associated with discounted cash flow methods of making capital budgeting decisions.

3. What general guidelines can you provide for interpreting the statement of cash flows?

4. A business executive once stated, "Depreciation is one of our biggest operating cash inflows." Do you agree? Explain.

5. The president of a plastics company was quoted in a business journal as stating, "We haven't had a dollar of interest-paying debt in over 10 years. Not many companies can say that." As a stockholder in this company, how would you feel about its policy of not taking on debt?

6. Would you expect a company in a rapidly growing technological industry to have a high or low dividend payout ratio? Why?

7. If a stock's market value exceeds its book value, then the stock is overpriced. Do you agree? Explain.

Noreen, E., Brewer, P., Garrison, R. H., & Peter C. Brewer, P. (2017).Managerial Accounting(16th ed.). McGraw-Hill Education.