The time value of money suggests ​

​Risk may be incorporated into capital budgeting by 1. increasing an investment’s internal rate of return by risk premium 2. adjusting the cash flows by the probability of occurrence 3. increasing the cost of capital by a risk premium

The owners of a corporation elect the board of directors.​

If the marginal cost of capital rises, that suggests the cost of some component of the firm’s capital structure has risen.

​Risk may be incorporated into capital budgeting by 1. increasing an investment’s internal rate of return by risk premium 2. adjusting the cash flows by the probability of occurrence 3. increasing the cost of capital by a risk premium

The highest credit rating is triple A.​

Increasing the speed with which receivables are collected has no impact on the cash budget.​

Increasing the speed with which receivables are collected has no impact on the cash budget.​

The net present value assumes that cash inflows are reinvested at the net present value.​

The cost of debt is affected by​ 1. retained earnings2. firm’s tax rate3. interest rate