Debt financing​ 1. increases stockholders’ return more than an equal dollar amount of preferred stock 2. increases stockholders’ return less than an equal dollar amount of preferred stock3. is less risky to the investor than preferred stock4. is more risky to the investor than preferred stock

A firm’s earnings are not determined by the cash budget but are determined by the income statement.​

If the firm issues debentures instead of preferred stock to raise additional funds, the cost of capital rises.

The internal rate of return method of capital budgeting permits a ranking of investment proposals.​

Accounts payable are excluding from the cash budget.

The paying of a cash dividend causes the firm’s    d.     d. 

The internal rate of return method of capital budgeting permits a ranking of investment proposals.​

​A firm should not make an investment if 1. its net present value is positive 2. its net present value is negative 3. the internal rate of return exceeds the cost of capital 4. the internal rate of return is less than the cost of capital    

Greater risk is associated with larger beta coefficients.​

​A firm should not make an investment if 1. its net present value is positive 2. its net present value is negative 3. the internal rate of return exceeds the cost of capital 4. the internal rate of return is less than the cost of capital