1- If a business is to operate, it must have assets which are -------

2- Long-term debt is defined as debt that has a maturity greater LESS than one year. (T/F)

3- Because debt ratings indicate risk, the lower the rating, the higher the interest rate that must be set on the issue to make it attractive to buyers. (T/F)

4-The mix of debt and equity financing used by a business is called its ---------

5-In general, a business's debt maturities should match the maturities of the -------- being financed with that debt.

6- Payback is the number of years that it takes to recover the cost of an investment. (T/F)

7-The time value of money concept is that current dollars are worth LESS than future dollar. (T/F)

8-The opportunity cost of capital (money) is a tried-and-true economic principle. If you invest $100 in investment A, those funds will not be available for any other purpose. Thus, you should require that the return on investment A be at least as good as the return on similar alternative investments (T/F)

9- --------- measures the expected rate (percentage) of return on an investment.

10- Firms often use project scoring to incorporate a large number of factors subjectively, including financial and nonfinancial elements, into the capital investment decision process (T/F)