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Please answer all thank you so much :)) Which of the following statements is FALSE? WACC is affected by market conditions including interest rates, tax
Please answer all thank you so much :))
Which of the following statements is FALSE? WACC is affected by market conditions including interest rates, tax rates, and the market risk premium A firm's WACC reflects the average risk of the existing projects undertaken by the firm The cost to a firm for capital funding equals the expected return to the providers of those funds Afirm's cost of capital depends primarily on the source of the funds, not the use QUESTION 4 Which of the following is FALSE? When interest rates increase, bond prices fall more for long-term bonds than short-term bonds Investors require higher yields on higher credit quality bonds Investors don't require higher yields on secured bonds like collateral or mortgages When interest rates fall, cash flows will be reinvested at lower rates more for high coupon rate bonds than lower coupon rate bonds QUESTION 5 Which of the following is TRUE about cash flows? When Free Cash Flow is negative, this means operating investments exceeded their operating cash flow You should always make investment decisions and financing choices based on the average tax rate Noncash expenses like depreciation affect cash flow Operating Cash Flow is the money made from investments in the business Which of the following statements is FALSE? WACC is affected by market conditions including interest rates, tax rates, and the market risk premium A firm's WACC reflects the average risk of the existing projects undertaken by the firm The cost to a firm for capital funding equals the expected return to the providers of those funds Afirm's cost of capital depends primarily on the source of the funds, not the use QUESTION 4 Which of the following is FALSE? When interest rates increase, bond prices fall more for long-term bonds than short-term bonds Investors require higher yields on higher credit quality bonds Investors don't require higher yields on secured bonds like collateral or mortgages When interest rates fall, cash flows will be reinvested at lower rates more for high coupon rate bonds than lower coupon rate bonds QUESTION 5 Which of the following is TRUE about cash flows? When Free Cash Flow is negative, this means operating investments exceeded their operating cash flow You should always make investment decisions and financing choices based on the average tax rate Noncash expenses like depreciation affect cash flow Operating Cash Flow is the money made from investments in the businessStep by Step Solution
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