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25) Ethical behavior A) Is the fifth basic principles of finance. B) Cannot be a concern to managers who are expected to maximize shareholder value.
25) Ethical behavior A) Is the fifth basic principles of finance. B) Cannot be a concern to managers who are expected to maximize shareholder value. C) In the corporate world means not breaking any laws. D) Is essential in business because unethical behavior destroys trust and business relationships. Answer: 26) Assume that you won the Lotta Dough Lotto jackpot for $20 million. Further assume that you were offered a choice to receive the $20 million today or to receive it in equal installments of $1 million per year for 20 years. According to one of the principles of finance, which would you take? A) The $20 million in equal installments of $1 million per year for 20 years because you would be afraid of spending it all right away. B) The $20 million today because it would be worth more than if you would receive it in equal installments of $1 million per year for 20 years. C) You would be indifferent as to when you would receive the $20 million since the total number of dollars received is the same either way. D) The $20 million in equal installments of $1 million per year for 20 years because it would be worth more than if you would receive it today
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