1. One source of potential conflict between bond and stockholders is the amount of liquidity the company should maintain. True False
2. The prospectus for stock and a bonds covenant agreement are legal documents which describe certain parameters or obligations of the company to holders. True False
3. Financial managers can attempt to manipulate the per share value of their company by buying back shares of their own firms stock. True False
4. It was recommended to have a consistent and upward moving dividend policy if the firm is in the maturity stage of operations. True False
5. The Y axis of the IOS chart should cumulatively add capital. True False
6. A sunk cost has no impact on evaluation of a capital project. True False
7. When using the NPV rule to calculate the value of the potential capital investment, the WACC is used to calculate the time value of money. True False
8. The sale of a manufacturing facility is part of the operating activities portion of the three-part cash flow statement. True False