6. The primary goal of a publicly-owned corporation should be to: a. maximize total corporate revenue b. maximize the price per share c. minimize the chance of losses d. maximize earnings per share e. none of the above 7. The firm's are primarily interested in ratios that measure the short-term liquidity of the company and its ability to make principal and interest payments. a. board of directors b. customers c. owners d. financial managers e. creditors 8. Calculate the effective annual rate associated with a 7 percent stated rate that is compounded semi-annually. a. 10% b. 16.5% c. 9.31% d. 7.12% e. 25% 9. Large publicly-traded corporations are exposed to agency costs because a. The separation of ownership and control of the corporation b. The board of directors has outside members c. The high compensation of CEOs d. None of the above 10. The function is arguably the single most important activity of the firm's manager. a financing b. capital budgeting c. financial management d. corporate governance e. risk-management