True or False and why:

1- Most ratio comparisons are made over time and with companies like the target company.

2- Flotation costs are generally reflected in a project's after tax cash flows.

3- Financing costs must be included in a project's after-tax cash flows.

4- A liquidity premium is paid to bond issuers with a high current ratio and TIE ratio.

5- As market rate rise the price of an existing bond is likely to rise as well.  

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Statement 1 True with nuance Its true t... View the full answer