1. Shareholder value refers to:
   1. The WACC of a Company
   2. The balance sheet of a Company
   3. Is thought of as the measure of a Companys success to the extent to which it enriches shareholders
   4. None of the above

2. A Companys earnings process includes all of the following except:

1. An analysts call for investors and analysts
2. An earnings announcement
3. A budget review
4. Future earnings expectations

3. Capital budgeting is:

1. A process whereby companies make decisions where to invest funds for the future
2. Includes analyzing project for optimal returns
3. Requires the WACC to be at different rates
4. A & B
5. All of the above

4. Projects which typically have low or negative returns include:

1. Regulatory Projects
2. Marketing Projects
3. New Acquisitions
4. All of the Above
5. None of the Above

5. What is one of the major differences between an economic P&L versus an accounting P&L

1. The application of GAAP
2. The treatment of Non-cash (eg depreciation, amortization, etc)
3. The treatment of deferred revenue
4. A and B
5. B and C

6. Which statement is true:

1. As the WACC decreases, the NPV increases
2. As the WACC decreases, the NPV decreases
3. As the WACC increases, the NPV increases
4. The NPV is not impacted by changes in WACC

7. Capital budgeting includes:

1. Estimating operating expenses
2. Project analysis
3. Determining where a company should invest
4. Both A and B
5. Both B and C

8. Which is true about common stock and preferred stock
   1. Common stock does not allow voting rights for the shareholder
   2. Preferred stock and common stock represent ownership in a Company
   3. For both, the investors return is tied to the performance of the Company and may result in a gain or loss
   4. All of the Above
   5. Both b and c