# 39 fishers separation theorem means that a a company

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39.Fisher's separation theorem means that:A.a company can make an investment decision even if all shareholders do not agree.B.a company should invest beyond the point where the net present value of the marginal unit of investment iszero.C.a company should invest up to a point where the rate of return on the marginal unit of investment equals themarket interest rate.D.none of the given options is correct.
AACSB: AnalyticBlooms: KnowledgeDifficulty: EasyEQUIS: Apply knowledgeGraduate Attributes: Problem-solvingLearning Objective: 02-01 Explain how a company's managers can, in principle, make financial decisions that will be supported by all shareholdersSection: 2.2 Fisher's Separation Theorem: a simplified example40.Which of the following statements is false?
AACSB: AnalyticBlooms: KnowledgeDifficulty: EasyEQUIS: Apply knowledgeGraduate Attributes: Problem-solvingLearning Objective: 02-01 Explain how a company's managers can, in principle, make financial decisions that will be supported by all shareholdersSection: 2.1 Introduction
41.Consider the following diagram:In this diagram, if the optimal policy is chosen, the company invests the amount:E11E
AACSB: AnalyticBlooms: ApplicationDifficulty: MediumEQUIS: Apply knowledgeGraduate Attributes: Problem-solvingLearning Objective: 02-02 Explain how the existence of a capital market makes it possible for the company to make decisions acceptable to allshareholdersSection: 2.3 Fisher's Separation Theorem: a formal approach
42.Consider the following diagram:In the diagram, if the optimal policy is chosen then shareholder 2, with the lower indifference curve, will optimiseher consumption by:
AACSB: AnalyticBlooms: ApplicationDifficulty: MediumEQUIS: Apply knowledgeGraduate Attributes: Problem-solvingLearning Objective: 02-02 Explain how the existence of a capital market makes it possible for the company to make decisions acceptable to allshareholdersSection: 2.3 Fisher's Separation Theorem: a formal approach
43.In the absence of _______________ companies are unable to make decisions about dividend policy that willplease all share holders.

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