Question 10: Agency costs are best defined as: (1 Point) The total interest paid to creditors over the fiscal year. The costs of the conflict of interest between management and its stockholders. The costs that result from default and bankruptcy of the firm. Corporate income subject to double taxation. The costs of the conflict of interest between the firm and its lawyers. Question 11: (1 Point) Which of the following statements is true? 1. Present values are always larger than future values when both r and t are positive. II. Present value is the value today of future cash flows discounted at the appropriate discount rate. III. If the rate at which you can invest is 0%, the value today of $1 to be received in the future is equal to $1. O I only O ll only O ill only I and II only. O II and III only. Which one of the following statements is incorrect? Question 12: (1 Point) If the accounting rate of return exceeds the required discount rate, the project should be accepted. A profitability index that is greater than 1.0 indicates that a project is acceptable. A positive net present value indicates that a project is acceptable. A project with a net present value of zero is earning exactly the required rate of return. When the internal rate of return is less than the required rate, the project should be rejected. The best definition of capital markets is: Question 13: (1 Point) The possibility of conflicts between shareholders and management in a large corporation. The process of planning and managing a firm's long-term investments. A venue where long-term debt and equity securities are bought and sold. The purchase or sale of securities whose value derives from the price of another, underlying, asset. None of the above is correct