TRUE or False and why?

1) Valuation is a systematic process through which we establish the prices at which stocks and bonds should sell.

2) The term "yield" relates only to investments whose holding period extends beyond one year, whereas "rate of return" typically relates to shorter-term investments.

3) Holding all other variables constant, as market interest rates increase, bond prices decrease.

4) Bond ratings measure the maturity risk associated with a given bond.

5) Issuing companies prefer having the option of retiring their debt whenever they wish. Therefore they include call features in their bonds.

6) A stock's total return is realized from two principal sources, its dividend yield and any gain from the increase in its selling price over the original purchase price of the stock.

7) The present value of a stock's projected future cash flows is what the share is worth today

8) Stocks that don't pay dividends have value based on the expectation that dividends will eventually will be paid.

9) The cost of capital is a single rate that reflects the average return paid to investors who provide the firm's capital.

10) An assumption implicit in the net present value technique is that all cash flows are reinvested at the cost of capital.