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true or flase for fiance 1.If interest rates rise, the price of existing bonds increases. 2. Corporations are obligated to pay cash dividends if they
true or flase for fiance
1.If interest rates rise, the price of existing bonds increases. 2. Corporations are obligated to pay cash dividends if they generate earnings. 3. An increase in risk should cause the value of common stock to fall. 4. Discounting refers to the process of bringing the future back to the present. 5.If the bank pays 5% compounded semi-annually, the true rate of interest is less than 5 % annually. 6. Net working capital is the difference between current liabilities and current assets. 7.Systematic risk is reduced through diversification. 8.The IRR equates the NPV and the cost of the investment. 9.Stock dividends increase the wealth of the stockholder who receive additional shares. 10. Beta coefficient and standard deviation may be used as indicators of risk. 11. The value of a stock should increase if investors' require,: rate of return declines. 12. If a firm has only $1,000m to invest, it should purchase, the least costly investment. 13. An increase in the debt ratio may be associated with a: increase in risk. 14. A portfolio consisting of assets that are highly correlate is well diversified. 15. The interest factors in the present value of a dollar tab' are the reciprocal of the interest factors in the future value of a dollar table Step by Step Solution
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