SampleExam_MID1_wans

SampleExam_MID1_wans - TIPPIE THE UNIVERSITY OF IOWA HENRY...

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TIPPIE THE UNIVERSITY OF IOWA H ENRY B. T IPPIE C OLLEGE OF B USINESS 6F:100 I NTRODUCTORY F INANCIAL M ANAGEMENT Mid-term Exam GENERAL INSTRUCTIONS: Fill in the answer sheet using a #2 lead pencil. Fill out your name and student number and fill in the corresponding circles. Hand in both the exam and the answer sheet. A STRICT TIME LIMIT WILL BE ENFORCED! Budget your time accordingly. MULTIPLE CHOICE INSTRUCTIONS: On the answer sheet, fill in the circle for the choice that represents the correct answer. If no choice matches your answer exactly, fill in the choice that comes closest to your answer. (4 points each) 1. The major goal of financial managers is : a. Maximize the investment profit. b. Maximize the size of the firm . c. Maximize the price of the firm.* d. All of the above. e. None of the above answers. 2. Which of the following statements represent decisions managers must make in an effort to maximize the firm's wealth? a. Managers must make investment decisions regarding types of products and services produced and delivered. b. Managers must decide how to finance the firm, by deciding the right mix of equity and debt. c. Managers must decide what percentage of earnings should be paid out as dividends, and how much should be retained and plowed back into the firm. d. None of the above answers is correct. e. All of the above are correct.* 3. Which of the following statements is correct? a. The NYSE is an example of a centralized exchange.* b. The NYSE is an example of an over-the-counter market. c. If Disney issues new shares of common stock to public, this is an example of a secondary market transaction. d. Statements a and c are correct. e. None of the statements above is correct.
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4. You recently sold 200 shares of Disney stock to your brother. This is an example of: a. A money market transaction b. A primary market transaction c. A secondary market transaction* d. A futures market transaction 5. Which of the following is NOT true about an arbitrage opportunity
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SampleExam_MID1_wans - TIPPIE THE UNIVERSITY OF IOWA HENRY...

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