Question 2 (3 points) Saved All other things being equal, a policy of holding a relatively-proportion of the firm's total assets in the form of current assets will tend to result in a expected profitability or rate of return on the total assets of the firm. constant, lower large, lower small., smaller - constant, higher Question 4 (3 points) The cost of new common stock is greater than the cost of retained earnings because dividends are increased of the flotation costs it increases the market price of the stock it decreases the earnings per share Question 5 (3 points) If someone were to ask me how depreciation helps a firm's cash flows, I can say that depreciation reported profits and it. taxes paid by a firm. increases, increases reduces, increases reduces, reduces increases, reduces