Double taxation refers to:

		interest being paid after corporate taxes are paid, and thus being taxed once at the corporate level and again at the personal level when an investor receives the interest
		none of the alternative responses are correct
		interest being paid after corporate taxes are paid, and thus being taxed twice at the corporate level
		dividends being paid after corporate taxes are paid, and thus being taxed twice at the corporate level
		dividends being paid after corporate taxes are paid, and thus being taxed once at the corporate level and again at the personal level when an investor receives the dividend

The signaling principle in finance would suggest that when a firm announces a plan to repurchase outstanding shares (stock), this action could be a signal that the firm's managers (insiders) believe the firm's shares are:

		over-valued in the market
		neither of the other alternative answers, as this action would not signal anything about management's sentiments with respect to the stock price.
		under-valued in the market

According to the financial perspective, value (thus shareholder wealth) creation is fundamentally based on: (as always, select the best answer)

		the timing & risk of the cash flows
		the size of the cash flows of the firm
		both the size of the firm's cash flows, as well as the net income, aka profits, of the firm
		the size, as well as the timing & risk of the firm's cash flows
		the net income, aka profits, of the firm

All of the following would tend to reduce the agency problem between owners (stockholders) and managers, EXCEPT which one?

		External audits of the firm's financial condition.
		Bonus plans such as stock options for managers.
		Managers tend to have more, as well as better, information about the firm than outside stockholders, because of asymmetrical information relationships
		The threat of takeover and potential firing of existing management
		all of the other option describe conditions that reduce agency problems

According to the payoff diagram that illustrates the payoff (at liquidation of a firm) to bondholders and stockholders as a function of the value of the firm,

		stockholders would prefer more risk than bondholders, because stockholders payoff is flat as the firm value increases beyond the debt level
		all of the other alternatives are equally correct
		stockholders would prefer more risk than bondholders, because their (stockholders) payoff increases dollar for dollar as the firm value increases beyond the debt level
		bondholders would prefer more risk than stockholders, because bondholders payoff is flat as the firm value increases beyond the debt level
		managers would prefer more risk than stockholders, because their (managers) payoff increases dollar for dollar as the firm value increases beyond the debt level