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(TRUE or FALSE?) One method to determine the cost of common equity is to calculate the yield to maturity. O TRUE O FALSE (TRUE or

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(TRUE or FALSE?) One method to determine the cost of common equity is to calculate the yield to maturity. O TRUE O FALSE (TRUE or FALSE?) Equity investors are paid last and so they are taking the greatest risk among all the suppliers of capital. O FALSE O TRUE (TRUE or FALSE?) Whenever there is a ranking conflict between net present value and internal rate of return we generally suggest that the project with the lowest net present value be chosen. O TRUE FALSE (TRUE or FALSE?) Long-term financing is usually a cheaper option than short-term financing because of its generally lower interest rates. O True O False (TRUE or FALSE?) Compensating balance is a specified amount that a lender requires a borrower to maintain in a non-interestpaying account during the life of a loan. O True O False

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