Question
True or False and why: 1- Most ratio comparisons are made over time and with companies like the target company. 2- Flotation costs are generally
True or False and why:
1- Most ratio comparisons are made over time and with companies like the target company.
2- Flotation costs are generally reflected in a project's after tax cash flows.
3- Financing costs must be included in a project's after-tax cash flows.
4- A liquidity premium is paid to bond issuers with a high current ratio and TIE ratio.
5- As market rate rise the price of an existing bond is likely to rise as well.
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