true or false:

1) Private equity funds tend to focus their investments in situations where promised returns are very low and the need for funds is long-term.

2) Higher bankruptcy costs will result in optimal capital structures using more

3) According to the clientele effect, a company's stock price will change because of investor reaction to a tax, dividend, or other policy change.

4) The annual cash budget not only shows the amount of financing needed for the year, but doesn't show when the funds will be needed.

5) The percent of sales method provides a reasonable prediction of asset levels for instances when there are economies of scale in the use of the asset being forecast and when asset purchases are lumpy.

6) A firm can pay dividends regardless of how much retained earnings it has.

7) Depreciation expense produces a cash outflow equal to the depreciation expense multiplied by the firm's marginal tax rate.