Which of the following statement is correct? O All the answers are incorrect. When the degree of risk associated with future cash flows goes down, the stock price also goes down. O Larger future cash outflows increase the stock price. The agency problem exists when the interests of a firm's managers (the agents) are in conflict with those of the firm's owners (the principals). Stockholders have unlimited liability and can lose more than the amount they paid to buy the stock. Nominal risk-free rate of interest: O refers to a deposit security issued by financial institutions that comes in minimum denominations of $100,000 and can be traded in the money market. none of the answers is correct. O refers to the interest rate without any premiums for the uncertainties associated with lending. O refers to the amount the bond issuer promises to pay to the investor when the bond matures. The terms face value, par value, and principal are often used interchangeably. O refers to the extra interest lenders demand to compensate for assuming the risk that promised interest and principal payments may be made late or not at all. A current ratio of 1.4 means: O the firm has $1.40 of fixed assets for every $1.00 of current assets the firm has a debt ratio of 140% O the firm is not doing well compared to the industry O the firm has $1.40 of current liabilities for every $1.00 of current assets O the firm has $1.40 of current assets for every $1.00 of current liabilities INCOME STATEMENT Net Sales Cost of Goods Sold $31,000,000 $5,120,000 Gross Profit $25,880,000 Depreciation Expense $1,000,000 S&A Expenses $1,672,000 Operating Income (EBIT) $23,208,000 Interest Expense $1,800,000 Income before Taxes $21,408,000 Income Taxes (42%) $8,991,360 $12,416,640 Net Income Autodesk Inc has the income statement shown above. What is the Net Profit Margin? Round your answers. 40% 48% 29% 54% O none of the answers is correct