3. In corporate finance, the financial manager should make decisions that maximise: A Their salary B Shareholder wealth C Their chances of a being paid a bonus in the future D Return to the debtholders 4. The statement that stock prices follow a random walk implies that A. the correlation coefficient between successive price changes (auto correlation) is not significantly different from zero, B. successive price changes are positively related. C. successive price changes are positively related and are negatively related. D. the autocorrelation coefficient is positive. 5. Which one of the following statements about UK market indices is true: A The FTSE-350 index represents the 350 companies that rank, in terms of market capitalisation, after the FTSE-100 and FTSE-250 companies. B The FTSE-100 index is an index of the top 100 companies by the number of shares that each company has in issue. C The FTSE-100 index is a sub-set of the FTSE-350 index. D The FTSE-100 index is a sub-set of the FTSE-250 index. 6. The financial manager of Ginger ple is deciding whether to raise new capital via the issue of shares or through debt. This decision is an example of: A. An investment decision B. A financing decision C. A dividend decision D. A risk management decision