1. A preferred stock that pays an annual dividend of $10, has a par value of $100, and has a required rate of return of 5%, will be valued at: a) $500 b) $50 c) $100 d) $200 2. What is the goal of the firm? The Maximization of Shareholder Wealth_ _or, Profit Maximization 3. At December 31, 2011, Under Armour, Inc. reported a retained earnings balance on its balance sheet of $2,000,000. At December 31, 2011, Nike, Inc. reported a retained earnings balance on its balance sheet of $3,000,000. Given this information, which of the following statements is necessarily true? a. Nike had higher net income for 2011 than Under Armour. b. Nike had more cash at December 31, 2011, than Under Armour. c. Nike has earned more net income since its inception than Under Armour d. No conclusions can be reached on which company has more cash or more cumulative net income without more information. 4. The current ratio of a firm would equal its quick ratio whenever: a. The firm has negative liquidity. b. The firm has zero inventory. c. The firm has zero debt. d. The ratios are calculated in such a way that they can never be equal