QUESTION $2$

There are five $(5)$ statements given under the question. Identify the statements as True or False. If the statement is false, rewrite the statement on the answer script to make it 'True'. Reasoning is NOT required. Follow the example given below in providing your answer.

Example:

$($a$)$ ICMAB stands for the Industrial Cost Management and Accounting of Bangladesh.

Answer:

$($a$)$ False. ICMAB stands for the Institute of Cost and Management Accountants of Bangladesh.

Note:

You will not get any mark if you simply rewrite as ICMAB does not stand for the Industrial Cost Management Accountants of Bangladesh.

If the statement is true, you need NOT to rewrite the statement rather only mention that the statement is True.

$($a$)$ The net present value of a project generally decreases as the required rate of retum increases.

$($b$)$ The discount rate to be used in evaluating lease financing versus debt financing is the firm's overall cost of capital.

$($c$)$ Cash dividends and earnings retention have a reciprocal relationship.

$($d$)$ The expected return on a risk$-$free security is zero.

$($e$)$ The book value of a firm is equal to the common stock equity account on its balance sheet.