Because risk premiums increase with increases in financial leverage, maximizing EPS does not assure owners' wealth maximization

GASB standards require that any fund that does not meet the specified criteria to be considered a major fund must be reported as part of a single column under the label nonmajor fund.

a. true b. false

If sensitivity analysis indicates none of the individual variables will cause a negative NPV under pessimistic conditions, then the:

A) project's discount rate should be reduced. B) economic forecasts are possibly overly optimistic. C) project is assured to be successful. D) interaction of the variables should be considered.