Question 1 Which of the following best describes the appropriate goal for the CEO of a publicly traded company? To maximize net income and thus earnings per share. To maximize the stock price. To maximize the market share while maintaining steady earnings growth To maintain steady growth in dividends while increasing earnings per share. To maximize the number of capital budgeting projects that the company accepts. Question 6 1 pts The term structure theory which is based on the idea that some investors (such as commercial banks) prefer shorter maturities, while others (such as life insurance companies) prefer longer maturities, is: O the liquidity preference theory. the unbiased expectations theory, the term structure of interest rates theory. O the yield curve theory. the market segmentation theory. Question 9 1 pts When investors buy longer-term securities, they require a higher rate of return because there is a greater risk of price fluctuations. This additional return is referred to as a: nominal risk premium O maturity-risk premium O liquidity-risk premium O yield differential O default-risk premium Question 10 17 An individual investor buying Time Warner stock through a broker is trading in: the secondary capital market the primary money market O the secondary money market O the equity market the primary capital market