Author Question: Which of the following is true of cash flows and risk? A) Low cash flow and low risk result in an ... (Read 36 times)

serike · **on:** Jul 10, 2018

Which of the following is true of cash flows and risk?

A) Low cash flow and low risk result in an increase in share price.
B) High cash flow and low risk result in an increase in share price.
C) High cash flow and high risk result in an increase in share price.
D) Lo cash flow and high risk result in an increase in share price.

Question 2

If a firm is subject to capital rationing, it is able to accept all independent projects that provide an acceptable return.

Indicate whether the statement is true or false