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

	a.	Maximize the stock price on a specific target date.
	b.	Maximize the firm's expected total income.
	c.	Minimize the chances of losses.
	d.	Maximize the firm's expected EPS.
	e.	Maximize the stock price per share over the long run, which is the stock's intrinsic value.

Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is CORRECT?

	a.	The amount representing interest in the first payment would be higher if the nominal interest rate were 6% rather than 8%.
	b.	A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.
	c.	The monthly payments will decline over time.
	d.	Exactly 8% of the first monthly payment represents interest.
	e.	The total dollar amount of principal being paid off each month gets smaller as the loan approaches maturity.

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