Clearly write TRUE or FALSE in the margin next to PEN. Company C established a SI million credit line with Bank B and result of these events, Bank B has a $1,000,000 asset -a loan to ew down 600,00 $600,000 liability - borrowing from B. 1. B and drew down $600,000. As a to C, and Company Ch as a 2. The only way for a company to increase its book value is through retained earni 3- The Beneficiaries in a Trust control the assets in the Trust 4. A compan y has produced profits for the year. The lower the payout ratio, the greater the increase in book value for the start of the next year. A sole proprietor has generated S100,000 in profits. Taxes on these must then pay income taxes on $80.000. 5. profits are $20,000. She 6. Shareholders in S corporations have un-limited liability A company knows now that it will need oil in one year. It can hedge its risk by entering into a forward contract, with a settlement date one year from now, to purchase oil at a price which will be set by the market on that settlement date. 7. 8. EBITD is equivalent to profits-before-taxes. 9. If the IRS were to increase the amount companies may deduct for depreciation, this will increase companies' accounting profits. 10. All else the same, an increase in profit margin raises ROE 11The higher a company's coverage ratio, the more risk faced by lenders to the company