27. The first rule of finance is A. Equity is better than debt. B. Stocks are less risky than bonds. C. Cash Flow, Cash Flow, Cash Flow D. Capital gains are better than dividends.

28. The core valuation principle for any security is A. The value of a security is the present value of expected future cash flows. B. The value of any security is always greater than its book value. C. The value of any security always increases with the rate of deflation. D. The value of any security is determined by regulations in the market

29. The risk that executives in publicly traded corporations may act in their own self-interest rather than in shareholders best interest is known as the ______________ problem. The corporations _________________ is supposed to ensure that corporate executives act in shareholders best interest. A. Moral hazard; president and CEO. B. Out-of-sight; CFO. C. Principle-agent; Board of Directors. D. Insider trading; largest shareholder

30. The two most important factors in describing an individual or organization's investment objectives are ________________. A. income level and age B. income level and risk tolerance C. age and risk tolerance D. return requirement and risk tolerance.