QUESTION : True or False

1- An IOS chart should be arranged by return on investment alternatives.

True

False

2- A technology company start-up in the growth and development stages is unlikely to institute a policy for paying dividends.

True

False

3- Information signaling can occur in a variety of ways including through earnings releases, changes in dividend policy, inside stock trades, or other SEC filings.

True

False

4- The payback period rule, unlike the net present value rule, adjusts for the riskiness of an investment.

True

False

5- In the capital budgeting process, a sunk cost is not considered in the evaluation of the capital project.

True

False