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Question 13 5 pts Disregarding risk, if money has a time value, that is, if interest rates are positive the future value of some amount
Question 13 5 pts Disregarding risk, if money has a time value, that is, if interest rates are positive the future value of some amount of money will be more than the amount originally invested and the present value of some amount to be received in the future is always less than that future amount to be received FALSE TRUE Question 14 5 pts The CFO of Desert Creek Industries plans to have the company issue $300 million of new common stock and use the proceeds to pay off some of its outstanding bonds that carry a 7% interest rate. Assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (EBIT), and its tax rate all remain constant. Which of the following would occur? The company's taxable income would fall. The company's net income would increase The company would have to pay less taxes. The company would have less common equity than before The company's interest expense would remain constant
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