What is RIGHT? Preferred stocks are a more expensive source of funds than common stocks O A higher growth rate of Free Cash Flow leads to a lower evaluation O Accounts Payable are NOT part of WACC Book values provide the best estimate for valuation as it comes from audited financial statements

1. Which of the following statements are true?a. The value of any investment is based on the cash flows it is expected to generate in the future.b. Investors are not generally risk averse.c. Uncertain cash flows are preferred to certain cash flows.d. All of the above are true.e. None of the above are true. 2. A basic knowledge of finance will help you with your personal investments by helping you understanda. how to accurately predict changes in the short-term interest rates.b. how to determine the optimal dividend policy for each firm.c. how to determine which technology is most likely to be accepted by consumers.d. how to review companies and industries to determine their prospects for future growth and therisk inherent in those companies and industries.e. how to predict the growth in sales for the firm.  3. Which of the following events would make it more likely that a company would choose to call itsoutstanding callable bonds?a.A reduction in market interest rates.b.The company's…

What are the inherent risks related to the valuation assertion for options/warrants related to equity.  Please use the illustration below to help you answer this question.

Which of the following statements is false?   A.   Internal controls are the processes by which the firm ensures that it presents accurate financial statements.   B.   Greenfield investments provide uncertain cash flows with high yields and high growth potential.   C.   Footnotes allow investors or any users to improve their assessments of the amount, timing, and uncertainty of the estimates reported in financial statements.   D.   Secondary markets are the markets in which existing, already outstanding securities are traded among investors.