Question 1 (10 points) In calculating NOWC, we subtract interest -bearing liabilities because: O a They are not really liabilities . Ob They are relatively small in value. O C They do not represent liatities that arise in the course of day-to-day operations. O They are always long-term in nature.Question 6 (10 points) The Debt-Equity Ratio is classified as a : O a Profitability Ratio Ob Solvency Ratio O c Liquidity Ratio O d Asset Utilization Ratioes Question 5 (10 points) Depreciation and amortization are added back in computing operating cash flows because: Oa They represent variable costs of production. Ob It is required under SEC guidelines. OC Excess cash has been deducted in the income statement. O d They represent outflows that record the wear and tear on assets over their estimated useful lives, as per accounting principles.Question 4 (10 points) Zero serial correlation between stock market returns over a pre-defined one-period time interval validates: O Semi-strong Form Efficiency Ob Non-zero covariance between stock returns OC Weak Form Efficiency Od Systematic variations in stock market returns.Question 3 (10 points) The Future Value of an ordinary annuity is the sum of : O a An arithmetic progresion. Ob Only an infinite geometric progression. O C A harmonic progression. O d A geometric progression.Question 2 (10 points) In calculating the Internal Rate of Return (IRR), the assumption is that: Oa Net Present Value is always positive. Ob Net Present Value is indeterminate. OC Net Present Value is always zero. Od Net Present Value is always negative