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True or False for question no 2 to 9
2. The greater the balance you have in your account, the slower your savings will grow. 3. In case of capital rationing, we should accept project with the highest positive NPV. 4. Interest Rate measures the coupon payment as a percentage of the bonds face value. 5. As long as investors agree about a firms prospects, they will also agree on the value 6. If investors believe a company will have the opportunity to make every profitable The interest rate is fixed when the bond is issued. of the stock. investment in the future, they will pay more for the companys stock today 7. When we use the Constant-Growth Dividend Discount Model to calculate the current share price, the growth rate must exceed the discount rate. today and earn interest on it. draw up a detailed proposal setting out particulars of the project, cash-flow 8. Money today is worth more than money in the future because you can invest money 9. In order to have a permission to go ahead with your investing project, you need to forecasts, and present value calculation, all these are about Capital Budget. 10. The decisions rule for investment timing is to choose the investment date that produces the highest net present value today
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Answer #1

Answer to Q#2 (First question in the list) FALSE Reason: Actually, the opposite is correct. That is, the greater the balance you have in your account, the faster your savings will grow. When balance in the account is more, interest accumulated on such account will also be more. As a result, the greater the balance you have in your account, the faster your savings will grow. Therefore, given statement is false.

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