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QUESTION 1 A corporation is: owned by stockholders who enjoy the privilege of limited liability easily divisible between owners. a separate legal entity with perpetual
QUESTION 1 A corporation is: owned by stockholders who enjoy the privilege of limited liability easily divisible between owners. a separate legal entity with perpetual life. o all of the above QUESTION 2 A firm with earnings per share of $5 and a price-earnings ratio of 15 will have a stock price of: $3.00 $5.00 $20.00 $75.00 QUESTION 3 Agency problems are least likely to arise in which organizational form? sole proprietorship limited partnership corporation subchapter S corporation QUESTION 4 All else constant, if your company increases its interest expense, then the amount your company pays in taxes will: decrease increase QUESTION 5 Assume that the interest rate (i) is positive, and that the future value is greater than the present value. As you increase the number of periods, the Future Value of a dollar will: increase decrease QUESTION 6 Assume that the interest rate () is positive, and that the future value is greater than the present value. As you increase i(the rate at which you are discounting a dollar), the Present Value will: increase decrease QUESTION 7 Assume that the interest rate (i) is positive, and that the future value is greater than the present value. As you increase the number of periods, the interest rate required for a given present value to become a given future value will: increase decrease
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