Question
1. Which one of the following best describes the top priority for a financial manager? A. Maximize the current accounting profits by utilizing the most
1. Which one of the following best describes the top priority for a financial manager?
A. | Maximize the current accounting profits by utilizing the most favorable accounting methods. | |
B. | Minimize the level of inventory held by the firm. | |
C. | Maximize the net working capital of the firm. | |
D. | Maximize the current value per share of the existing stock. |
2. A bond is currently trading below par. Which of the following must be true about that bond?
A. | The bond's yield to maturity is less than its coupon rate. | |
B. | The bond is a zero-coupon bond. | |
C. | The bond's yield to maturity is greater than its coupon rate. | |
D. | B and C above. |
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