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Which of the following statements are false?
I. A corporation faces two principal financial decisions. First, decide which investments to make. Second, decide how will the earnings be distributed to the stockholders as dividends.
II. Net working capital (NWC) is the difference between a company’s current assets and current liabilities.
III. Real assets such as machinery and buildings are considered tangible assets, while financial assets and securities such as treasury bonds are considered intangible assets.
IV. The R&D department of Unilever is considering introducing a new type of dry shampoo to the market. In order to produce this new product, the corporation needs to invest $25 million in new machinery. This investment is considered as Capital Budgeting, also known as CAPEX (capital expenditure).
V. A dividend is a distribution of profits by a corporation to its stakeholders. Dividends are always distributed as cash dividends in most firms because stock dividends are limited only to financial entities.