1. All of the following are functions of the financial manager except

a. Analyzing and planning the companys performance.

b. Anticipating the companys financial needs

c. Assigning the market price of the companys stock

d. Allocating funds to the most profitable asset

2. Which of the following statement is false?

a. The financing decision involves the process of allocating funds for investment in competing assets.

b. The treasurer would be responsible for activities such as managing cash balances, granting credit to customers and managing the process of issuing new securities.

c. The optimal capital structure is the best combination of long-term debt and equity.

d. It is necessary to determine the appropriate risk-return trade-off to maximize the market value of the firm for its shareholders.

3. Regine is a financial manager who has discovered that her company is violating environmental regulations. If her immediate superior is involved, her appropriate actions is to

a. Do nothing since she has a duty of loyalty to the organization

b. Consult the audit committee

c. Present the matter to the next higher managerial level

d. Confront her immediate superior.