Question 4(1 point) From a financial point of view, depreciation does not constitute a cash flow and is not involved in the calculation of the NPV. Therefore, the NPV of a project will be the same, whether the company makes a straight-line or decreasing depreciation True False

Question 5(1 point) Preferred shares are said to be preferred because their holders receive a stable dividend and have priority over the ordinary shareholder in the event of a company failure True False

Question 6(1 point) Debt financing is financially more restrictive for the company than common equity financing since the company is obliged to pay interest but not dividends True False