True or False

11) Accounting profits is the most relevant variable the financial manager uses to measure returns.

12) Cash flows is the most relevant variable to measure the returns on debt instruments, while GAAP net income is the most relevant variable to measure the returns on common stock.

13) The expected rate of return from an investment is equal to the expected cash flows divided by the initial investment.

14) Actual returns are always less than expected returns because actual returns are determined at the end of the period and must be discounted back to present value.