1.

The DFN is the amount that the company needs to

Group of answer choices

Sell to support its financial plan

Invest to support its financial plan

Borrow to support its financial plan

None of the choices

2. Which among the statements is incorrect?

Group of answer choices

When the NPV is less than 0, the decision is to reject the project.

When the IRR is equal to 3%, the cost of capital is 3%, the NPV must be 0.

When the NPV is equal to 3, the cost of capital is 3%, the IRR must be 0%.

When the NPV is equal to 0, the exact IRR can be determined.

3. When the net present value is greater than 0, the profitability index is __________ 1.0.

Group of answer choices

Equal to

Less than or equal to

Less than

Greater than

4. Most firms engage in types of planning:

Group of answer choices

Long-term financial planning

All of the choices

Strategic planning

Short-term financial planning

5. Why is maximizing shareholder wealth a better goal than maximizing profits?

Group of answer choices

Maximizing shareholder wealth gives superior consideration to the entire portfolio of shareholder investments.

Maximizing profits gives too much weight to the tax position of shareholders.

Maximizing shareholder wealth places greater emphasis on the short term.

Maximizing profits ignores the uncertainty that is related to expected profits.