Question 6 (0.5 points) You are given the balance sheets for year 2018 and 2019. When you construct the firm's cashflow statement for 2019, in the part of investing activities, you calculate the additions to property, plant and equipment (the amount is equal to the increase in net fixed assets plus depreciation). Is this amount a cash outflow or inflow for the firm? The amount of additions to property, plant and equipment is a cash outflow for the firm. i.e. the firm's cash holding will decrease The amount of additions to property, plant and equipment is a cash inflow for the firm. i.e. the firm's cash holding will increase Question 7 (0.5 points) You are a financial advisor at the bond dealer Dewey, Cheatem, and Howe. Your client has informedyou that she is on the Board of Directors of a company that needs to buy some bonds, but is only allowed to purchase investment grade bonds. You recommend the D-rated bonds of Dry Wells Oil Exploration, Inc., because, although the par value of the bonds is $1000, the current market price is only $200. Which of the following statements is False? Your client will not be able to purchase these bonds Investors clearly believe this company is not in danger of bankruptcy You made a very bad recommendation The yield to maturity of these bonds is higher than the coupon rate