Which of the below questions are TRUE? 1. Dividends paid reduce the net income t

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Which of the below questions are TRUE? 1. Dividends paid reduce the net income that is reported on acompany's income statement.   False 2. One way to increase EVA is to maintain the same operatingincome with less capital.   True 3. Corporations are allowed to exclude 70 percent of theirinterest income from corporate taxes. False 4. If a company's ROE is greater than its cost of equity, itsEVA is positive. True 5. A firm with financial leverage has a larger equitymultiplier than an otherwise identical firm with no debt in itscapital structure.   True 6. Capital market transactions only include prederred stockand common stock transactions.   False 7. The proportion of the payment of a fully amortized loanthat goes toward interest declines over time.   True 8. A 10-year bond would have more reinvestment rate risk thana 5-year bond, but all 10-year bonds have the same reinvestmentrate risk.   False 9. One of the advantages of the corporate form of organizationis that there is no double taxation.   False 10. One drawback of forming a corporation is that it subjectsthe firm to additional regulations.    True The answers that you see beside each statement is what I cameup with, please correct me if I am wrong. Thanks Which of the below questions are TRUE? 1. Dividends paid reduce the net income that is reported on acompany's income statement.   False 2. One way to increase EVA is to maintain the same operatingincome with less capital.   True 3. Corporations are allowed to exclude 70 percent of theirinterest income from corporate taxes. False 4. If a company's ROE is greater than its cost of equity, itsEVA is positive. True 5. A firm with financial leverage has a larger equitymultiplier than an otherwise identical firm with no debt in itscapital structure.   True 6. Capital market transactions only include prederred stockand common stock transactions.   False 7. The proportion of the payment of a fully amortized loanthat goes toward interest declines over time.   True 8. A 10-year bond would have more reinvestment rate risk thana 5-year bond, but all 10-year bonds have the same reinvestmentrate risk.   False 9. One of the advantages of the corporate form of organizationis that there is no double taxation.   False 10. One drawback of forming a corporation is that it subjectsthe firm to additional regulations.    True The answers that you see beside each statement is what I cameup with, please correct me if I am wrong. Thanks

Explanation / Answer

All of them are correct.

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