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solve this please 16) Assume that an investor is offered a chotee of a risk-free security that is expected to retum 4.5% or a very

solve this please
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16) Assume that an investor is offered a chotee of a risk-free security that is expected to retum 4.5% or a very high-risk corporate stock. What would induce the investor to purchase the corporate stock? A) a return that is substantially lower than 4.5% B) a return of 45% C) a return of 4.5% D) $1.5 cash dividends E) tax exemption 17) All of the following are outflows of cash EXCEPT A) an increase in inventory. B) a decrease in accounts receivable. C) a decrease in notes payable. D) a dectease in account payable. E) an increase in accounts receivable 18) The higher an asset's beta, A) the more responsive it is to changing market returns. B) the less responsive it is to changing market returns. C) the higher the expected return will be in a down market. D) the lower the expected return will be in an up market. E) the lower the risk-free retum 19) An increase in the Treasury Bill rate the required rate of return of a common stock. A) has no effect on B) increases C) decreases D) cannot be determined by 20)Profit maximization as the goal of the firm is NOT ideal because A) profits are only accounting measures. B) cash flows are more representative of financial strength. C) profit maximization does not consider risk. D) profits today are less desirable than profits eamed in future years. E) profits do not take time value of money into account 21) Cash flow and risk are the key determinants in share price. INCREASED RISK and INCREASED CASH FLOW, other things remaining the same, results in and A) a lower share price and a lower share price respectively. B) a higher share price and a higher share price respectively. C) a lower share price and a higher share price respectively. D) a higher share price and a lower share price respectively. E) an unchanged share price and an undetermined share price respectively. 22) Retained earnings on the balance sheet represents A) net profits after taxes. B) net profits after taxes minus preferred dividends. C) cash D) fixed asset E) the cumulative total of earnings reinvested in the firm. 23) When preparing a statement of cash flows, retained earnings adjustments are required so that which of the following are separated on the statement? A) Revenue and cost B) Assets and liabilities. C) Depreciation and purchases. D) Net profits and dividends. E) EBIT and tax

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