According to Modern Corporate Finance, which is NOT among the four economic principles that serve as the foundations of finance?

		Conservation of value
		Positive marginal utility of wealth
		Diminishing marginal utility of wealth
		Depreciation of value
		Diminishing marginal return

2. In the context of corporate finance, which of the following is one of the definitions of equity?

		The value of the firm's assets minus the value of the firm's debt
		The degree to which profits are equally distributed between various stakeholders
		The value of the firm's assets minus the firm's cash account
		The total amount of the firm's plant and equipment
		The firm's current assets minus the firm's current liabilities

3. With respect to the question of when should the firm stop investing, which of the following describes the exact point of optimal investment?

		Where the marginal benefit of the next investment is equal to the marginal costs of that investment
		Where the agency costs associated with investment is minimized
		Where marginal profit of the next investment is greater than the marginal profit of the previous investment
		Where the risk associated with the next investment is minimized
		Where marginal profit of the next investment is positive