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Question 1 0 pts Which of the following statements is correct? O A good goal for a corporate manager is maximization of expected EPS. O

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Question 1 0 pts Which of the following statements is correct? O A good goal for a corporate manager is maximization of expected EPS. O Most business in the U.S. is conducted by corporations; corporations' popularity results primarily from their favorable tax treatment. O A good example of an agency relationship is the one between stockholders and managers. O Corporations and partnerships have an advantage over proprietorships because a sole proprietor is subject to unlimited liability, but investors in the other types of businesses are not. O Firms in highly competitive industries find it easier to exercise "social responsibility" than do firms in oligopolistic industries. 0pts Weston Corporation has some money to invest, and its treasurer is choosing between General Motors bonds and State of Illinois bonds. Both have the same maturity, and they are equally risky and liquid. If the Illinois bonds, which are tax-exempt, yield 6 percent, and Weston's marginal income tax rate is 40 percent, what yield on GM bonds would make Weston's treasurer indifferent between the two? 6.0% O 7.5% O 10.0% O 12.5% O 15.0 %

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