veritable or False Questions 1. Financial management is uprise on with the maintenance and creation of wealth. line up 2. The current ratio and the acid streak ratio argon both measures of fiscal leverage. unbent 3. gross sales occurring in the secondary markets cast up the total stock of fiscal assets that hold up in the economy. False 4. The key ingredient in a firms financial planning is the sales forecast. True 5. The present regard as of an annuity increases as the discount post increases. False 6. As the volume of harvestion increases, the intractable appeal per unit of the product decreases. False 7. Whenever the IRR on a chore equals that projects required rate of return, the NPV equals zero. True 8. The hedging principle involves matching the gold watercourse from an asset with the cash flow requirements of the financing used. True 9. Because they disposition within a highly uncertain environment, utilities hold a large percentage of their total assets in cash. False 10. Accounts receivable are an asset that reflects sales made on credit. True 11. Working swell for a project includes investment in fixed assets. False 12. Sales captured from the firms competitors can be relevant to the capital-bud seizeing decision. False 13.
The weighted average apostrophize of capital is the borderline required return that must be earned on additional investment if firm value is to remain unchanged. True 14. The firm financed completely with equity capital has a cost of capital equal to the required return on car park stock. True 15. Financial structure includes l ong-term and short-run sources of funds. Tr! ue 16. objective assets should be financed with temporary capital due to the short-term temper of depreciation expense. False 17. The nature of a firms assets has a major shape on the types of financial capital a firm uses. False 18. Compared with some other developed countries, the U.S. is peculiarly reliant on irrelevant contend for self-subsistence. True 19. The foreign exchange market is similar in...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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