SECTION A - TRUE FALSE INSTRUCTION: Read each statement carefully and determine whether the statement is true or false. Please fill in the answers in the table given below by writing "T" for true or "F" for false in the space provided. (Rubrics: I mark for each correct answer, for 9 statements, total mark is 9) 1 2 3 7 8 9 Question Answer Score 4 5 F 6 F F 1. Intrinsic value of a security is the value that the security is currently trading in the market 2. The market price of common stock is determined by individuals buying and selling the stock 3. If two mutually exclusive projects have positive NPV, both should be accepted by management 4. The price at which the bond is traded in the stock exchange is the maturity value. 5. Coefficient of variation is a measure of relative risk. 6. A capital investment is one that is undertaken by only large corporations. 7. Common stock is an investment security traded in the money and capital market. 8. The value of a bond will be lower than the par value when both the coupon rate and the discount rate is the same. 9. The payback period technique of project evaluation is a discounted cash flow technique. Page 2 of 5