(TRUE or FALSE?) Any event or financial decision that increases the risk associated with receipt of expected cash flows reduces stock price. O FALSE O TRUE (TRUE or FALSE?) Before the 2008 financial crisis, high risk mortgage-backed securities which included sub- prime mortgages had been given very high ratings by the rating firms such as Moody's, Standard and Poor's, and Fitch. O TRUE O FALSE (TRUE or FALSE?) Cash inflows expected sooner result in a lower stock price. FALSE O TRUE (TRUE or FALSE?) Closely held corporations are private and the shares of these firms are not traded on organized exchanges nor on an organized over the counter market such as Nasdaq. FALSE O TRUE (TRUE or FALSE?) Company value does not depend on future cash flows, their timing, and their riskiness. FALSE O TRUE (TRUE or FALSE?) Corporations are legal entities separate from their owners unlike proprietorships and partnerships. O FALSE O TRUE (TRUE or FALSE?) Corporations cannot be taxed as separate legal entities and cannot pay their own income tax just as if they were individuals. O FALSE O TRUE (TRUE or FALSE?) Corporations exist separately from their owners, and therefore they can "live" beyond the death of their original owners. O TRUE O FALSE (TRUE or FALSE?) For businesses that sell stock publicly, the financial manager's role is to maximize the firm's profits. O FALSE O TRUE (TRUE or FALSE?) If a managing director uses a private jet even though the common stockholders do not receive enough value because private jet is too costly to the corporation, then there is no agency problem. O FALSE O TRUE (TRUE or FALSE?) It is less likely that a financial crisis similar to the 2008 may happen if the housing prices go up much more quickly than personal income. O TRUE O FALSE