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As a firm increases its use of debt, it becomes more financially leveraged and riskier.

The internal rate of return assumes that cash inflows are reinvested at the firm’s cost of capital.​

If the cost of capital rises, an investment’s internal rate of return falls.​

Dividend reinvestment plans permit stockholders to defer income taxes on dividends.​

The internal rate of return assumes that cash inflows are reinvested at the firm’s cost of capital.​

Regression analysis as a forecasting tool is less restrictive than the percent of sales.​

If regression analysis estimates that assets exceed liabilities and equity, the firm will require external sources of finance.​

If a firm sells inventory at cost for cash, its total assets rise.​

Regression analysis as a forecasting tool is less restrictive than the percent of sales.​

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