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If two investments are mutually exclusive, the firm cannot make both investments.​

If a firm’s current assets and current liabilities decline, the firm had a cash inflow.​

The cost of retained earnings tends to exceed the cost of issuing new stock because of the flotation costs.

If a firm’s current assets and current liabilities decline, the firm had a cash inflow.​

The higher the “times‑interest‑earned,” the safer (i.e., more assured) should be interest payments.​

A cash budget differs from an income statement because the cash budget 1. does not determine profits or losses 2. excludes depreciation expense 3. uses disbursements and not expenses

Investments in money market mutual funds are insured up to $100,000 by the federal government.​

A cash budget differs from an income statement because the cash budget 1. does not determine profits or losses 2. excludes depreciation expense 3. uses disbursements and not expenses

A decrease in interest rates decreases the net present value of an investment.​

If the probability of an investment’s cash inflows is decreased, the firm’s cost of capital should be increased.​