TRUE, FALSE OR UNCERTAIN. MUST EXPLAIN WHY 6) TFU "A firm with rapidly growing earnings will have a higher than market average price-earnings ratio." ____________________ Name _____________________ UNI Time Downloaded Time Returned 1 7) TFU "An investment project should be accepted if its net present value is positive using either the cost of debt or the cost of equity of the firm as a discount rate 8) TFU "The optimal capital structure of a firm is to have as much debt as possible without risking bankruptcy. 9) TFU "The beta of an asset will change if it is included in a portfolio of other stocks." 10)TFU "A firm that plans to never pay a dividend is worthless." 11)TFU "Stock prices are sometimes irrationally volatile relative to fundamentals." 12)TFU "'Value stocks,' meaning stocks with relatively high book-to-market ratios, should outperform stocks with low book- to-market ratios." 13)TFU "Rising discount rates and costs of capital can plunge the economy into recession." 14) TFU "Companies that have high stock price momentum have high costs of capital