FIN 534 TEST 1

FIN 534 TEST 1 - FIN 534 TEST 1 Question 1 Which of the...

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FIN 534 TEST 1 Question 1 Which of the following statements is CORRECT? Correct Answer: One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership. Question 2 Which of the following is a primary market transaction? Answer Correct Answer: IBM issues 2,000,000 shares of new stock and sells them to the public through an investment banker. Question 3 Which of the following statements is CORRECT? Answer Correct Answer: If expected inflation increases, interest rates are likely to increase.
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Question 4 The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to Answer Correct Answer: Maximize the stock price per share over the long run, which is the stock’s intrinsic value. Question 5 Which of the following statements is CORRECT? Answer Correct Answer: The justification for the "light" regulation of hedge funds is that only “sophisticated” investors with high net worths and high incomes are permitted to invest in these funds, and such investors supposedly can do the necessary “due
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This note was uploaded on 11/11/2011 for the course FIN 534 taught by Professor Nalla during the Spring '08 term at Strayer.

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FIN 534 TEST 1 - FIN 534 TEST 1 Question 1 Which of the...

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