• Two NPV lines of two projects interact, because one project has higher cash flows at the beginning of its life and its more preferable over the other project when discount rates are high.

True

False

• If inventories of the firm don't increase by the same amount of increase in sales, then the best method for forecasting the financial statements of the firm is through operating ratios as a percentage of sales.

True

False

-------------------- leads to no change in number of stocks of the firm.

		New stock plan
		Dividends in the form of stocks
		Stock split
		Open market plan