Reference no: EM131322285
1. Proper risk-return management means that
a. the firm should take as few risks as possible
b. the firm must determine an appropriate trade-off between risk and return.
c. the firm should earn the highest return possible.
d. the firm should value future profits more highly than current profits.
2. Corporate governance is the
a. relationship and exercise of oversight by the board of directors of the company.
b. relationship between the chief financial officer (CFO) and institutional investors.
c. operation of a company by the chief executive officer (CEO) and other senior executives on the management team.
d. governance of the company by the board of directors with a focus on social responsibility.
3. Institutional investors are important in today's business world because
a. as large investors, they have more say in how businesses are managed.
b. they have a fiduciary responsibility to the workers and investors that they represent to see that the firms they own are managed in an ethical way.
c. as a group they can vote large blocks of stock for the election of board members.
d. All of the options
|
How much should darlene pay for this investment
: Darlene needs an investment that will generate income of $300 at the end of year 1, $300 at the end of year 2, $500 at the end of year 3, $600 at the end of year 4, and $1,200 at the end of year 5. How much should Darlene pay for this investment if s..
|
|
Compute the irr and mirr for project
: Based on the cash flows shown in the chart below, compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project. Project Erie Time 0..
|
|
What expected economic conditions could cause investors
: If the one-year interest rate is 2% and the two-year rate is 3%, what does the expectations theory imply that the expected one-year interest rate will be one year from now? what expected economic conditions could cause investors to form this interest..
|
|
Constant growth-market believe will be the stock price
: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.50 a share at the end of the year (D1 = $2.50) and has a beta of 0.9. The risk-free rate is 4.9%, and the market risk premium is 4.0%. Justus c..
|
|
Proper risk-return management means
: Proper risk-return management means that. Corporate governance is the. Institutional investors are important in today's business world because
|
|
What is your value for the current share price now
: Now suppose the company in (a) actually pays its annual dividend in equal quarterly installments; thus, the company has just paid a dividend of $0.90 per share, as it has for the previous three quarters. What is your value for the current share price..
|
|
Contest sponsors have to deposit in the escrow account
: The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years. If the prize money is guaranteed by AAA bonds yielding 3%and is placed into an escrow account when the contest is announced 1 ye..
|
|
What is the present value of the annuity
: What is the present value of the following annuity? $3,365 every half year at the beginning of the period for the next 12 years, discounted back to the present at 3.79 percent per year, compounded semiannually.
|
|
What is the value of the fund today
: Your brother who is 6 years old, just received a trust fund that will be worth $22,000 when he is 21 years old. If the fund earns 0.11 interest compound annually. What is the value of the fund today?
|