Pregunta 1
Pregunta
The main goal of the financial manager is to increase the firm's overall profits
Pregunta 2
Pregunta
In a corporation, profits are generally measured in terms of earnings per share
Pregunta 3
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There is a positive correlation that exists between risk and return. The higher the risk of an investment, the higher the required return will be on that investment.
Pregunta 4
Pregunta
A firm's earnings are a true representation of cash flows available to the stockholders
Pregunta 5
Pregunta
Agency costs are fees that are paid by the management of a corporation to compensate any investor that feels that they have suffered a loss due to the agency problem.
Pregunta 6
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Because of tax benefits, financial managers prefer cash flows later rather than sooner
Pregunta 7
Pregunta
The ethical behavior of the financial manager has a substantial impact on the shareholder's wealth maximization concept
Pregunta 8
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Information asymmetry means that all market participants have exactly the same information set with which to make decisions.
Pregunta 9
Pregunta
The best deals in the market will go to the first investor who can recognize them and act on them
Pregunta 10
Pregunta
The required rate of return is what you think you will get
Pregunta 11
Pregunta
Which of the following is not one of the primary activities of the financial manager?
Respuesta
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Making financing decisions
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Prepare financial statements
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Make investment decisions
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Perform financial analysis
Pregunta 12
Pregunta
The main goal of the financial manager is to
Pregunta 13
Pregunta
___________ can be defined as the art and science of managing money
Respuesta
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economics
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finance
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accounting
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banking
Pregunta 14
Pregunta
When the risk of an investment is high, the rate of return required by the investor will be
Respuesta
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moderate
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high
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low
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equal to a 30 day T-bill
Pregunta 15
Pregunta
The wealth of the shareholders of a corporation is represented by
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price of stock
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earnings per share
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profits
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cash flows
Pregunta 16
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If the managers of a company are not the owners of the company, they are considered
Respuesta
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directors
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shareholders
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insiders
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agents
Pregunta 17
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Agency costs pose the biggest problem for
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directors
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shareholders
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insiders
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agents
Pregunta 18
Pregunta
The largest provider of funds in the financial system is
Respuesta
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individuals
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businesses
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government agencies
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Bill Gates
Pregunta 19
Pregunta
Investments, markets and institutions, and corporate finance are
Pregunta 20
Pregunta
The problem with profit maximization is that it is