Working capital represents firms investment in assets

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Which of the following statements is not true?

Derivatives are claims whose value is derived based on what happens to another underlying asset.

As a general rule, the required return of common stocks is higher than the YTM of bonds issued by the same company.

Working capital represents a firm’s investment in long-term assets

The dividend irrelevance theory states that dividends have no effect on either the price of a firm’s stock or its cost of capital

Reference no: EM131027151

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