Question 10 2 pts In a discussion of Financial Statements, Taxes, and Cash Flow you are asked if Net Income as it is computed on the income statement is cash flow. What do you say? No, because the average tax rate is relevant for most financial decisions. Yes, because book values are equal to market values. No, because a noncash expense, depreciation, is deducted when net income is computed. Yes, because of the Generally Accepted Accounting Principles. Question 11 2 pts breaks down return on equity into three component parts: operating efficiency of the firm, its asset use efficiency, and financial leverage Du Pont identity. Equity multiplier Return on assets. Statement of cash flows. Question 12 2 pts This chapter discussed the relationship between the discount rate and present value. For a given length of time, if the discount rate increases what happens to the present value? The present value decreases. The present value remains the same. The present value increases. The interest rate does not affect present value