Quiz Ch 03 – T/F Market Value of Assets and Liabilities
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: A high market value of assets implies a high market value of liabilities.
True or false: A high market value of assets implies a high market value of liabilities.
True or false: The market value of shareholders’ equity claim equals the difference between the market values of assets and liabilities.
True or false: A positive net income gives a positive cash flow from operations in that period.
True or false: Individuals are subject to personal tax on both dividends and interest payments distributed by companies.
True or false: Expanding inventories results in cash utilization, leading to a reduction in the firm’s net cash balance.
Which statement is accurate regarding a corporation that has reported negative net income in both the current and the previous fiscal year?
Regarding earnings distributed as dividends, who bears the responsibility for paying taxes?
Which statement accurately reflects the individual’s tax liability in the case where an individual’s income for the year consists of both dividend and interest payments?
On an income statement, the net income is computed before subtracting what?