6. Which of the following is the overarching principle that a financial manager should follow when making decisions? O c. Decisions should be on behalf of the firm's owners that give the greatest benefit to those owners, the firm's employees and the firm's other stakeholders a Decisions should generate the greatest benefits for the firm. O b. Decisions should provide benefit to the firm without incurring costs d. Decisions should increase the value of the firm to its investors. Question 7 4 pts 7. When corporations need to raise funds through stock issues, they issue an IPO through the: O d. centralized NASDAQ exchanges O c. tertiary market O b. secondary market a. primary market 8.100 shares of Merck Corp. stock is purchased by John for $75 per sharer and sold one year later to Adam for $78. Who receives the profits from this sale? O a Merck O c. Adam O d. John and Merck receive a percentage b. John Question 9 4 9. Which of the following would not be classified as a current asset? b. Buildings and equipment a. Short term Marketable securities O c. Prepaid expenses O d. Inventory 12. What is the present value of a $100,000 inheritance that you expect to receive in 5 years? O a. $133,82.56 b. $74,725.82 O d. $92,000 O c. $108,000 Question 13 4 pt- 13. Smith Corporation has 250,000 shares of stock outstanding, total shareholder equity of $10 million, and stock price of $53. What is the company's market capitalization? O c. $10,000,000 d. $13,250,000 O b. $3,250,00 O a $15,000,000 14. A home buyer signed a 30-year, 5% mortgage loan for $100,000. How much will the annual mortgagee payments be? Od: $3,625.00 O a. $7,384.87 O c. $8,074.24 b. $6,505.14 Question 15 4 pts 15. Mr. McGraw is creating a college investment fund for his daughter. He will deposit $2,000 each year for the next 15 years. He thinks he will earn a 5% annual rate of return. How much money will be available for his daughter in 15 years? Question 19 4 pts 19. If you deposit $5,000 in an account that pays 5% simple interest, how much will the total account be worth in 10 years? O $5,000 $5,250 0 $7.750 $7,500 Question 20 4 pts 20. If you deposit $5,000 in an account that pays 5% compound Interest, how much will the total account be worth in 10 years