1. Which of the following is not true of common stocks? (2 Points) Lowest in hierarchy of payment. No voting rights. O No maturity period. Limited Liability 2. The concept of Financial management is: (2 Points) Profit maximization O All features of obtaining and using financial resources for company operations O Organization of funds Usage of money on a production process of products and services 4. Which of the following is true of preferred stocks investors? (2 Points) Have voting rights. No maturity period. Non-fixed dividend. Unlimited liability. 5. Which of the following help ensure managers act in the best interest of owners? A compensation package for managers that ties their salary to the firm's share price. II. The incentives managers have for being promoted or having better job prospects are related to the prosperity of the firm. II. The threat that if the firm does poorly, shareholders will use a proxy fight to replace existing management IV. A high probability the firm will become a takeover candidate if the firm performs poorly. (2 Points) I and II only I, II, and Ill only I, III, and IV only I, II, III, and IV 6. Risk Free rate is generally calculated using which of the following: (2 Points) Corporate Bond T-Bills. Municipal Bond. Junk Bond