Stocks and bonds are rarely used as collateral for short-term loans.

Group of answer choices

True

False

The majority of capital budgeting projects are short-lived projects.

Group of answer choices

True

False

The net present value of an investment is the present value of a projects future cash flows minus its initial cost.

Group of answer choices

True

False

Capital budgeting decisions can only involve mutually exclusive projects.

Group of answer choices

True

False

It is possible for a set of financial data to have more than one IRR value.

Group of answer choices

True

False

The profitability index is calculated by subtracting the net investment from the present value of the cash flows.

Group of answer choices

True

False

The firms capital structure is the mix of debt and equity used to finance its assets.

Group of answer choices

True

False

The required return, the cost of capital, and the discount rate are actually three distinctively different concepts.

Group of answer choices

True

False

There is no opportunity cost associated with retained earnings.

Group of answer choices

True

False

Corporate bond yields are extremely stable over time.

Group of answer choices

True

False

The dividend payout ratio is the proportion of each dollar of earnings that is paid to shareholders as a dividend; equals one minus the retention rate.

Group of answer choices

True

False