1(a). (TRUE or FALSE?) The time value of money means that money you hold in your hand tomorrow is worth more than the same amount of money you expect to receive today.

1(b). (TRUE or FALSE?) Staggering maturities common stocks allows the issuing company to retire its common stock in an orderly fashion without facing a large one-time need for cash, as would be the case if the entire issue were to mature at once.

1(c). (TRUE or FALSE?) Preferred stock has an infinite maturity and lower-priority claim to assets and earnings than bondholders.