T or F

Common Stock investors receive their return in two ways: the opportunity to participate in price appreciation and the potential to receive cash dividends.

True

False

Preferred stock is a hybrid security that has characteristics of both long-term debt and common stock.

A) True

B) False

The more difficult it is to estimate a firm's cash flow needs, the greater the need to carry higher precautionary balances of cash.

A) True

B) False

If a company accepts only projects that meet or exceed its weighted average cost of capital, that company will consistently be creating shareholder value.

True

False