Fin 600 Quiz 1 Spring 10-1

Fin 600 Quiz 1 Spring 10-1 - QUIZ 1, FIN 600, SPRING 2010...

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QUIZ 1, FIN 600, SPRING 2010 1. Which of the following statements is CORRECT? A) It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship. B) Corporate shareholders are exposed to unlimited liability. C) Corporations generally face fewer regulations than sole proprietorships. D) Corporate shareholders are exposed to unlimited liability, and this factor may be compounded by the tax disadvantages of incorporation. 2. i . The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to A) Maximize the firm's expected EPS. B) Minimize the chances of losses. C) Maximize the firm's expected total income. D) Maximize the wealth of current shareholders 4) All other factors held constant, the present value of a given annual annuity decreases as the number of discounting periods per year increases. A) True B) False
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i i At a rate of 6.5%, what is the future value of the following cash flow stream?
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Fin 600 Quiz 1 Spring 10-1 - QUIZ 1, FIN 600, SPRING 2010...

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