week02_TutorialQuestions - SCHOOL OF BANKING AND FINANCE...

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FINS 1613 Tutorial Questions 1 SCHOOL OF BANKING AND FINANCE FINS1613 BUSINESS FINANCE TUTORIAL QUESTIONS WEEK 2 –Questions based on Lecture 1, Introduction and Basic Concepts Multiple-choice Questions 1. Important financial decisions include: a. Dividend decisions b. Investment decisions c. Financing decisions d. Answers a and b only e. Answers a, b, and c 2. The primary goal of a publicly-owned firm interested in serving its stockholders should be to: a. Maximize expected total corporate profit. b. Maximize expected EPS. c. Minimize the chances of losses. d. Maximize shareholder wealth. e. Maximize expected net income. 3. Cash flows generated by the firm can be___________. a. Paid to shareholders b. Paid to bondholders c. Paid to government d. Reinvested within the corporation e. All of the above 4. Which of the following statements is most correct? a. Compensating managers with stock can reduce the agency problem between stockholders and managers. b. Restrictions are included in credit agreements to protect bondholders from the agency
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week02_TutorialQuestions - SCHOOL OF BANKING AND FINANCE...

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