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6. Equity financing has a tax advantage since dividends paid out to shareholders reduce a firm's taxable income.
True False
7. Inflation expectations affect interest rates.
True False
8. If the discount rate decreases, the present value of a given future amount decreases.
True False
9. All other things being equal, I'd rather have $1,000 today than to receive $1,000 in 10 years.
True False
10. One of the most common methods of determining the risk an investment poses is standard deviation.
True False
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