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14. Which of the following statement(s) is/are true? I. Other things held constant, the less debt a firm uses, the higher its return on total
14. Which of the following statement(s) is/are true? I. 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. Ionly d. e. I and III only None of the above choices b. II only c. III only 15. 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. IL. 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. d. I and III only e. None of the above choices a. Ionly b. II only c. III only
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