True/ False

1.Treasury stock generally does not have voting rights, does not earn dividends, and does not have a claim on assets in liquidation.

2.A conversion feature in a bond allow s bondholders to change each bond into a stated number of shares of common stock.

3.The weighted marginal cost of capital is the firm's weighted average cost of capital associated with the next dollar of total new financing.

4.Since retained earnings are viewed as a fully subscribed issue of additional common stock, the cost of retained earnings is always equal to the cost of new common stock equity .

5.At the operating breakeven point, t he sales revenue is equal to the sum of the fixed and variable operating costs.

6.Comparison of the degree of operating leverage of two firms is valid only when the base level of sales used for each firm is the same.

7.A stock split commonly increases the number of shares outstanding and the stock's per share par value

8.In the economic order quantity model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to decrease.

9.Generally, lenders recognize that holding collateral can reduce losses if the borrower defaults, but the presence of collateral has no impact on the risk of default.

10.Financial considerations are always the only factors that should be considered in corporate decision-making.