1. One advantage of dividend reinvestment plans is that they reduce the taxes investors would have to pay if they received cash dividends. True False

2. A foreign bond is a US dollar deposited in a bank outside the US. True False

3. Shipping costs is an example of cost associated with carrying inventory. True False

4. Stockholders who have yet to come into their peak earning years, for example, fall into the clientele that prefers the firms in which it invests to distribute a high percentage of earnings as dividends. True False

5. Loss of customer goodwill is an example of a cost associated with carrying inventory. True False

6. The devaluation or revaluation of currency refers to a decrease or increase, respectively, in the stated par value of a fixed exchange rate currency. True False