1.Answer True or False.If a statement is not strictly true, then it is False.

______The yield to maturity on a bond is different than the IRR for zero coupon bonds.

________Payback is generally a better capital budgeting tool than IRR.

________The depreciation tax shield is a cash flow.

________If people feel more patient, bonds are more attractive and should give better returns.

_______Firms that are expected to have high dividend growth in the future are likely to have a high price-to-earnings ratio.

_______Cash flows and earning are usually interchangeable for capital budgeting purposes.

_______Capital gains are not real cash flows because they create a tax shield/loss.

_______Firms should always exercise an option to delay investment unless the NPV<0.

_______Standard IRR is just a special case of the modified IRR.

_______DCF analysis is the only way to value private firms.