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Q 1 . Say whether the following statements are True ( T ) or False ( F ) ( 1 0 marks ) In competitive

Q1. Say whether the following statements are True (T) or False (F)(10 marks)
In competitive bid distribution method several investment bankers involved
A corporate treasurer is typically responsible for data processing
3.Shareholder wealth minimization would imply minimizing the price of common stock.
()4. Systematic risk can't be reduced.
(1)5. Bonds are Long-term liabilities on the issuer
()6. Improper diversification allows corporation to reduce risk
The sole proprietorship and the limited partnership both feature unlimited liability
Managers always won't work for the owners unless it's in their best interest.
Profit maximization is not a main goal of the firm, shareholders' wealth minimization is.
External funding will decrease during a recession
Financial markets exist in order to mobilize funds from savers to users of those funds.
OTC is Over-the-Counter virtual electronic exchange.
The true owners of the corporation are the preferred stock holders
Well-developed financial markets contribute to the overall growth of the economy
Treasury stocks are stocks that once outstanding and have been re-purchased by the company
Financial ratios analysis can be comparable, absolute figures can't.
Borrowing more money increases a company's return on equity in booming economies
Rational investor may prefer an investment with higher standard deviation of returns
An investor with a required return of 80% for stock x will purchase stock x if the expected return for stock x is more than or equal to 8%.
Historically, investments with the highest returns have the lowest standard deviations
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