Which of the following statements is TRUE? O a. The capital budgeting decision deals with how a firm finances itself. b. Security analysis and portfolio theory fall under the area of corporate finance, OC. The observed market price of a company's stock is the stock's "true" value based on accurate risk and return data od One advantage of the corporate form of organization is the ability to raise larger sums of equity capital than other organizational forms. oe. The goal of corporate financial management is to maximize the wealth of both creditors and shareholders. Which of the following statements is TRUE? . According to the DuPont identity, all else held constant equal, an increase in the use of debt would increase a firm's ROE ob Cash flow from assets should equal cash flow to shareholders. OC If a company's operating margin increases but its profit margin decreases, it could mean that the company paid less in interest or taxes. Od Comparison of dollar values on two firms financial statements is the best way to analyze the firm's relative financial health