QUESTION 1 The more risk you take, the higher the return you are certain to cart True False QUESTION 2 The wider the risk premium, the lower the price of a promised or expected future cash flow. True False QUESTION 3 For a given profit margin and tumover ratio, a greater leverage ratio results in a higher ROE True False QUESTION 4 If a company fails to sell everything it manufactures, the inventory is a liability on its balance sheet. O True False QUESTIONS Shareholders of a corporation are owners of the corporation. True O False QUESTION 6 The faster an asset can be depreciated (according to IRS rules), the greater a company's (after-tax) profits. True False