6. Relevant cash flows ate the specific set of cash flows that a firm can expect if it implements the project. If the firm doesnt implement the project, the cash flows wont exist. So it is the additional cash flows that the company can expect from the project.

True

False

7. For a leveraged firm, the standard deviation of its Return on Invested Capital (_ROIC) is 1.8%, the standard deviation of its Return on Equity (_ROE) is 5.8%. So its calculated financial risk is: _____

		1.8%
		4.0%
		5.8%
		7.6%

9. Generally, the corporate cash distribution policy defines: ______

		The level of cash distributions to shareholders.
		The form of the distribution (dividend vs. stock repurchase).
		The stability of the cash distribution.
		All of above

23. Depreciation is a non-cash charge, but it does have an indirect impact on the cash budget.

True

False