Cash flows from acquisitions and divestitures of investments should be recorded as financing activities on the statement of cash flows. True False Question 2 (4 points) Debt is a more expensive source of capital than equity because interest must be paid on debt. True False Question 3 (4 points) All the following inhibit companies from providing false or misleading good news except Reputation effects as subsequent events support or refute earlier news Audit requirements Competition in the capital markets Legal repercussions