1. The primary goal of a publicly owned corporation is to: A. maximize earnings per share after taxes. B. maximize dividends per share. C. maximize shareholder wealth. D. minimize shareholder risk. 2. A corporate financial manager trying to maximize shareholder value: A. must behave ethically in order to stay out of jail. B. can safely ignore ethics as long as no laws are broken. C. is not concerned with ethics but rather with writing iron-clad contracts. D. is concerned with ethics because unethical behavior destroys trust, and businesses cannot function without a certain degree of trust. 3. Ron invested RM1,000 in a risky investment and Burn invested RM1,000 in a less risky investment. One year later, Burn's investment is worth RM1,030. Which of the following statements is most CORRECT? A. Ron's investment must be worth more than RM1,030 because of the risk-return tradeoff, given that Ron's investment was more risky B. If Ron's investment is worth more than RM1,030, then Burn was irrational to invest in the less risky investment C. If Ron's investment is worth less than RM1,030, then Ron was irrational to invest in the risky project D. The worth of Ron's investment cannot be determined with the information given 4. Capital market instruments include: A. negotiable certificates of deposit. B. corporate equities. C. commercial paper. D. Treasury bills. 5. When Farhan calls his remiser and instructs him to purchase 1000 shares of Boniva Corporation Berhad common stock, the transaction occurs in the: A. credit market. B. futures market. C. primary market. D. secondary market. 3 Introduction to Finance (BAFD2013) CONFIDENTIAL May 2022 Final Examination 6. Given the nominal rate of interest (k) is 5.2% and the anticipated rate of inflation (i) 1.6%, find the real rate of interest (k). (Round your answer to the nearest decimal) A. 3.5% B. 2.2% C. 1.7% D. 1.6% 7. KH Corporation has current assets of RM10,000,000, current liabilities of RM4,500,000, inventory of RM1,000,000, and sales of RM12,000,000. What is the acid test ratio? A. 2.0 B. 1.67 C. 0.22 D. 0.1 8. Yoho Enterprise reported the following items for the current year: Sales =RM3,000,000; Cost of Goods Sold = RM1,500,000; Depreciation Expense = RM170,000; Administrative Expenses = RM150,000; Interest Expense = RM30,000; Marketing Expenses = RM80,000; and Taxes = RM300,000; Yoho's operating profit margin is equal to: A. 25.67%. B. 35.67%. C. 36.67%, D. 50.00%