Question: True/False and Why: 1. A pro-forma statement is a financial prediction of the future. 2. Changes in the stock price and the number of shares

True/False and Why:

1. A pro-forma statement is a financial prediction of the future.

2. Changes in the stock price and the number of shares available will evoke changes in the market cap.

3. Uncertain financial or interest rate environments create event risk for the firm.

4. Business risk is non-diversifiable and all firms are exposed to it.

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