13. Which of the following statement(s) is/are false? 1. Other things held constant, the less debt a firm uses, the higher its return on total assets will be. II. Considered alone, an increase in net fixed assets would increase a company's current ratio. III. A stock with low market to book (M/B) ratio is considered a value stock. a. I only d. I and III only b. II only e. None of the above choices c. III only 14. Which of the following statement(s) is/are false? I. Both interest and dividends paid by a corporation are deductible operating expenses, hence they decrease the firm's taxes. II. On the balance sheet, total assets must always equal the sum of total liabilities and equity. III. The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm's future earnings and dividends, and the riskiness of those cash flows. a. I only d. I and III only b. II only e. None of the above choices c. III only 15. Money markets are markets for a. Foreign currencies. b. Long-term bonds. c. Common stocks. d. Consumer automobile loans. e. Short-term debt securities such as Treasury bills and commercial paper. 16. Which of the following statement(s) is/are false? I. Shareholder wealth maximization should be a key goal of the managers, II. Analyst Jenny estimated a stock intrinsic price to be $55 while it is trading at $60. According to Jenny, this stock is undervalued. III. Trader Jenny purchased 500 shares of a stock at $60 in the NYSE. This is an example of a secondary transaction. a. I only d. I and III only b. II only e. None of the above choices c. III only