1. The primary goal of financial management is: a-Maximize current sales b-Maxim
ID: 2804530 • Letter: 1
Question
1. The primary goal of financial management is:
a-Maximize current sales
b-Maximize the current value of each common stock.
c-Minimize operational costs
2. Earnings per share are equal to:
a-Net income divided by the total number of shares outstanding.
b-Gross income multiplied by the even value of the common shares.
c-Operational income divided by the even value of the common shares.
3. Financial leverage refers to:
a-The amount of debt that is used in the capital structure of a company.
b-The ratio of retained earnings and stockholders' equity.
c-The ratio of the cost of goods sold to total sales.
4. The present value of the future cash flows discounted at the appropriate discount rate is called the:
a-Main value
b-Present value.
c-Simple Interest Rate.
5. The process of finding the present value of a certain future amount is often called:
a-increase.
b-discount.
c-compound.
6. _____________ can be interpreted as the equilibrium or breakeven financing rate that leads to a profitable project.
a-the recovery period.
b-the internal rate of return.
c-the net present value.
7. The most valuable investment disregarded if an alternative investment is chosen is a:
a-Expense value expense.
b-Sunk cost or Sunk cost.
c-Opportunity cost.
8. Variable costs _____________.
a-They change based on the number of units produced.
b-They change depending on the next unit produced.
c-they comprise the sum total of all the expenses of production of the company during a period of time
9. The marginal costs ______________.
a-(over a period of time) are constant regardless of the number of units produced.
b-They change depending on the next unit produced.
c-they comprise the total sum of all the production expenses of the company during some period of time.
10. Fixed costs ________________.
a-(over a period of time) are constant regardless of the number of units produced.
b-They change depending on the next unit produced.
c-they comprise the total sum of all the production expenses of the company during a period of time.
11. The amount of systematic risk present in a particular risky asset, in relation to the systematic risk present in an average risk asset, is called the _________ of the asset in particular:
a-Beta coefficient
b-Law of a single price.
c-Diversifiable risk.
12. The weighted average of a company's costs of its capital, preferred shares and after-tax debt is:
a-Expected performance by capital gain of the share.
b-Expected return for capital gain of the firm.
c-Weighted average cost of capital (CPPC).
Explanation / Answer
Dear student, only one question is allowed at a time. I am answering the first question
1)
The primary goal of financial management is to maximize the returns of the shareholders in the form of increased stock prices and corresponding wealth of the shareholders
So, option b is the correct option
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