Are the following True or False:

1) A company that pays no dividends is always a poor investment.

2) A major advantage of debt financing is that interest expense is tax deductible.

3) Dividends in arrears are reported as current liabilities on the balance sheet.

4) Treasury stock is a corporation's own stock that has been issued and subsequently repurchased by the corporation.

5) A stock split increases total stockholders' equity.

6) A liability for dividends is recorded on the date of record.

7) All other things being equal, the higher the return on equity ratio, the better the financial performance of the company.

8) The par value of stock indicates what the stock is worth.

9) The price-earnings ratio reveals information about the stock market's expectations for a company's future growth in earnings.

10) A stock dividend decreases the market price of the company's stock.