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True/False: Indicate whether the following statements are true or false by circling the letter T or Fas appropriate. 1. 2. Companies sometimes use free cash

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True/False: Indicate whether the following statements are true or false by circling the letter T or Fas appropriate. 1. 2. Companies sometimes use free cash flow to buy short-term investments. True / False 3. NOPAT is equivalent to income from operating activities. True False 4. One definition of free cash flows to the firm is net cash flows from operations+ - net cash flows from investing activities. True / False 5. The price one is willing to pay for a common stock is positively related to expected free cash flows to the firm (FCFF) and negatively related to the required rate of return. True False 6. Bondholders' claims represent debt (or liability) and never need be "paid off". True / False 7. Cash, short-term investments, accounts receivable, and inventories, are operating current assets. True / False 8. Any cash, cash equivalents, and marketable securities that are used to support operations are reported as short-term investments. True False Loomeone other than a common li True/False: Indicate whether the following statements are true or false by circling the letter T or Fas appropriate. 1. 2. Companies sometimes use free cash flow to buy short-term investments. True / False 3. NOPAT is equivalent to income from operating activities. True False 4. One definition of free cash flows to the firm is net cash flows from operations+ - net cash flows from investing activities. True / False 5. The price one is willing to pay for a common stock is positively related to expected free cash flows to the firm (FCFF) and negatively related to the required rate of return. True False 6. Bondholders' claims represent debt (or liability) and never need be "paid off". True / False 7. Cash, short-term investments, accounts receivable, and inventories, are operating current assets. True / False 8. Any cash, cash equivalents, and marketable securities that are used to support operations are reported as short-term investments. True False Loomeone other than a common li

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