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Instructor: Yervant Nessirnian E-mail: Yervant.nessimian@hansoncollegecom HCJIUEZ-E' .12.. Ill' Assignment One 1. If shares of both a high-tech startup company and the Royal Bank promised cash

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Instructor: Yervant Nessirnian E-mail: Yervant.nessimian@hansoncollegecom HCJIUEZ-E' .12.. Ill' Assignment One 1. If shares of both a high-tech startup company and the Royal Bank promised cash ow of $2 per share over the next year, for which shares would you be prepared to pay the higher price? Why? 2. Dollararna Corporation has expected earnings per share of $2.00 in its rst year, $4.00 its second year, and then $10.00 per year for many more years. Dollar Tree Corporation has expected earnings of $10.00 a share for three years only. Which company would you value higher and why? Ml'll' -. 3. The primary goal of nancial management is to: A. Increased earnings B. Maximizing cash ow C. Maximizing shareholder wealth D. Minimizing risk of the rm E. None of the above. 4. A good risk-return management implies that: A. the rm should take as few risks as possible. B. consistent with the objectives of the rm, an appropriate trade-off between risk and return should be determined. C. the rm should earn the highest return possible. D. the rm should value future prots more highly than current profits. 5. One of the major disadvantages of a sole proprietorship is

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