1. (I or F) In general, the higher the growth rate, the lower the forward PE ratio. 2. (Tor F) Other things being the same, investors require a higher return for bonds with a lien to a collateral than bonds with no lien to a collateral. + 3. (TorF) If the management of the firm is suspected of serious agency problems, the board of directors should urge it to pay a relatively small amount of dividends. H 4. (Tor F) In general, as the discount rate rises, the IRR of the project falls. 5. (Tor F) The prices of short-term bonds are more sensitive to changes in interest rates than the prices of long-term bonds." 6. (Tor F) From a tax paying investor's point of view, a stock repurchase is more desirable + than a cash dividend. 7. (Tor F) Other things being the same, the higher the risk of a stock, the higher the price of the stock. 8. (Tor F) The decision on capital structure influences the company's net income. 4 9. (Tor F) o Investors are more likely to prefer a low dividend payout if their firm has few, 4 if any, positive net present value projects