Question
1. In serving its stockholders, the primary operating goal of a publicly-owned firm should be to: Select one: a. Maximize its expected total corporate income.
1. In serving its stockholders, the primary operating goal of a publicly-owned firm should be to:
Select one:
a. Maximize its expected total corporate income.
b. Maximize its expected EPS.
c. Minimize the chances of losses.
d. Maximize the stock price per share over the long run, which is the stock's intrinsic value.
e. Maximize the stock price on a specific target date.
2. Which of the following has the highest Present Value?
Select one:
a. $800/yr. for 9 years discounted at 9%.
b. $800/yr. for 9 years discounted at 7%.
c. $600/yr. for 9 years discounted at 9%.
d. $600/yr. for 9 years discounted at 7%.
e. $800/yr. for 10 years discounted at 7%.
3. What's the present value of $10,225 discounted back 5 years if the appropriate interest rate is 4.5%?
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