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choose: 1-The primary goal of a publicly-owned firm interested in serving its stockholders should be to Select one: : a. Maximize its expected total corporate

choose: 1-The primary goal of a publicly-owned firm interested in serving its stockholders should be to Select one:

: a. Maximize its expected total corporate income

b. Maximize its expected EPS

c. Maximize the stock price per share over the long run, which is the stocks intrinsic value

d. Minimize the chances of losses

2-The stock is undervalued if Select one:

a. market price is grater than the intrinsic value

b. intrinsic value is does not equal than the market price

c. market price is less than the intrinsic value

d. intrinsic value is equal than the market price

3-The most risk free securities include Select one:

a. Corporate bonds

b. Mortgages

c. Treasury bills and Treasury notes and bonds

d. Commercial paper

4-A share of Ford stock is a pure financial asset, while an option to buy Ford shares is Select one:

a. a derivative security whose value depends on the price of Ford stock

b. a derivative security whose value is equal to the price of Ford stock

c. a derivative security whose value doesnt depends on the price of Ford stock

d. a derivative security whose value is smaller than the price of Ford stock

5-The transfers of money and securities which is used mainly by small firms, and relatively little capital is raised is which of the following Select one:

a. Indirect Transfers through Investment Bankers

b. None of the choices

c. Indirect Transfers through financial intermediary

d. Direct transfers

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