Quiz Ch 03 – T/F Book Values as Forward-Looking Measures
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: “Forward-looking” measures of value consider book values.
True or false: “Forward-looking” measures of value consider book values.
True or false: Many intangible assets are excluded from the balance sheet primarily due to their challenging valuation.
True or false: In common-size balance sheets, every item is displayed as a percentage of total assets.
True or false: When calculating taxable income, companies have the ability to subtract interest paid to debtholders and dividends paid to shareholders.
True or false: Subtracting capital expenditures from operating cash flow equals free cash flow.
True or false: On the statement of cash flows, dividends paid are categorized as a financing activity.
True or false: Lowering accounts receivable results in a cash expenditure which reduces the firm’s net cash balance.
True or false: The company’s net cash balance when acquiring new equipment consumes cash.
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.