1. Sammy decides to sell stock in his company. He must disclose his financials on a regular basis. When analysts review his revenue and take away all the expenses that the firm needs to keep going, what is leftover is referred to as ..............

   	A.	SG&A
   	B.	Free cash flow
   	C.	Net income
   	D.	Profit margin

2. The "true" value of a company is its intrinsic value. Which of the following is a true statement about a firm's intrinsic value?

   	A.	A firm's intrinsic value can be impacted by things outside of the control of the firm's managers
   	B.	Since the cost of debt is calculated after taxes it does not impact the intrinsic value
   	C.	The capital structure of the firm does not impact the firm's intrinsic value
   	D.	All of the above are true

3. The "true" value of a company is its intrinsic value. Which of the following is a true statement about a firm's intrinsic value?

   	A.	If a firm has an increase in the cost of debt, and all else remains the same, the intrinsic value of the firm will increase.
   	B.	If a firm has an increase in their tax rate, and all else remains the same, the intrinsic value of the firm will increase.
   	C.	IF the market interest rate increases and all else stays the same, the intrinsic value of a firm will decrease.
   	D.	All of the above are true

4. How can you earn a profit by investing in stock?

   	A.	Dividends
   	B.	Interest payments
   	C.	Capital gains
   	D.	Both A & B are correct
   	E.	Both A and C are correct

5. Having a trade deficit can reduce the buying power of our money.

   True

   False