This section consists of Twelve (12) statements. Each statement is worth one (1) mark. You are required to indicate whic

[answerhappygod]

This section consists of Twelve (12) statements. Each statement
is worth one (1) mark. You are required to indicate which of the
statements are true or false.
Statement
True
False
1.1
Physical assets like buildings and machinery are financial
assets.
True
False
1.2
The difference between the assets and liabilities is equal to
net worth or shareholders’ funds.
True
False
1.3
Replacement value is the amount company has to spend to acquire
the same asset in the existing condition.
True
False
1.4
Liquidation value is the value one would get on the assets when
the business is in progress.
True
False
1.5
The market value of a share is lower than the book value if the
business is profitable.
True
False
1.6
When the capital market is efficient, the market price reflects
the intrinsic value of a share.
True
False
1.7
Debentures are always secured.
True
False
1.8
Bonds/debentures can be redeemed at par, premium or
discount.
True
False
1.9
Present Value concept helps the investor in taking a decision to
buy or sell the securities, once the required rate of return is
known.
True
False
1.10
Bonds, which mature at a specified period are known as perpetual
bonds.
True
False
1.11
Present value concept compares the present value of the bond
with the current market value to determine whether the bond is
overvalued or undervalued for decision making.
True
False
1.12
The value of a share is the present value of its future stream
of dividends and selling price
True
False