1) The market value of a firm's fixed assets: A) in addition to the firm's capital expenditures reflects the true value of a firm. B) will never exceed the book value of those assets. C) is amortized annually by the depreciation expense. D) is equal to the estimated current book value of those assets. E) is less predictable than the book value of those assets.

2) Cash flow from assets will increase with: A) a decrease in net capital spending B) a decrease in the cash flow to creditors C) an increase in the change in net working capital D) all of the above E) none of the above

3) Cash flow to creditors decreases when: A) current liabilities are repaid. B) new long-term loans are acquired. C) accounts payables decrease. D) long-term debt is repaid. E) interest expense declines.