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Stuck on the following questions. Multiple choice. One answer for each. 1. The primary goal of a publicly-owned firm interested in serving its stockholders should

Stuck on the following questions. Multiple choice. One answer for each.

1. The primary goal of a publicly-owned firm interested in serving its stockholders should be to:

-Minimize the chances of losses

-Maximize share price

-Minimize expected EPS

-Minimize shareholder wealth

-Maximize expected total corporate profit

2. Which one of the following is an agency cost?

-Cost of dividend payments to stockholders

-Cost of interest payments to bondholders

-Cost of an internal audit required by bondholders

-Cost of wages for managers

-Cost of dividend payments to bondholders

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