true or false

choose

2. Net capital spending is equal to net additions to net working capital. TE 3. Corporate securities are contingent claims because book valud can be negative. TE 4. Now you have the following assets: Marketable securities, Cash, Fixed assets, Accounts receivable. Among them, Marketable securities is generally the least liquid asset. TE 10. Cash flow to stockholders is defined as A.interest payments B.repurchases of equity less cash dividends paid plus new equity sold. C.cash flow from financing less cash flow to creditors. D.cash dividends plus repurchases of equity minus new equity financing. E.None of the above 11. Which of the following is not considered one of the basic questions of corporate finance? A.What long-term assets should the firm invest? B.How much inventory should the firm hold? C.How can the firm raise money for required capital expenditures? D.How should the short-term operating cash flows be managed? E. All of the above 12. Time preference refers to the fact that A.corporations match current assets with current liabilities to minimize the chance of bankruptcy. B.corporations match both current and long-term assets with current and long-term liabilities to minimize the change of bankruptcy. C.investors prefer current cash flows to future cash flows. D.investors seek to time cash flows to minimize tax liabilities. E.None of the above. 13. Which of the following will increase sustainable growth? A.Buy back existing stock B.Decrease debt. Cincrease profit margin. D.Increase asset requirement ratio. E.Increase dividend payout ratio. 15. The primary market is defined as the A.market for insured securities. B.market for new issues. C.market for securities of the largest firms. O D.over-the-counter market. E. None of the above