Question: Please answers 1,2,3,4,5 true or false A-TRUE/FALSE -(10 POINTS- 2 points each) 1) The Valuation Principle shows how to make the costs and benefits of
A-TRUE/FALSE -(10 POINTS- 2 points each) 1) The Valuation Principle shows how to make the costs and benefits of a decision comparable so that we can evaluate them properly 2) The fact that corporations' shares are easily traded within the market has a net effect of acting as a disincentive for managers to favor the interests of shareholders over their own interests. 3) If broker will buy a share of stock from you at $3.85 and sell it to you at $3.87, the ask price would be $3.85. 4) Use of Generally Accepted Accounting Principles (GAAP) and auditors have eliminated the danger of inadvertent or deliberate fraud in financial statements. 5) When you borrow money, the interest rate on the borrowed money is the price you pay to be able to convert your future loan payments into money today
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