Valuation of a financial asset requires knowledge of A. the future cash flows B. the appropriate discount rate C. the past price movements D. A and B above E. all of the above When calculating the cost of capital it is best to rely on the book values of debt and equity to compute the weights since they are more stable than market values. A] True B] False The internal rate of return (IRR) method of evaluating projects equates the present value of cash inflows with the present value of cash outflows by discounting all of the flows at the firm's cost of capital. A] True B] False A quick ratio much smaller than the current ratio reflects A. a small portion of current assets is in inventory. B. a large portion of current assets is in inventory. C. that the firm will have a high inventory turnover. D. that the firm will have a high return on assets. Depreciation is a source of cash inflow because A. it is a tax-deductible noncash expense. B. it supplies cash for f