Chapter 01

Chapter 1An Overview of Managerial Finance TRUE/FALSE 1. In general, the role of the fiscal music director is to plan for the acquisition and wasting disease of funds so as to maximize the value of the slopped. involuntary queasy system:TDIF: softTOP:Financial manager 2. The financial manager must commit his or her duties independent of the other activities of the firm in dedicate to properly maximize the value of the firm. autonomic nervous system:FDIF: shortTOP:Financial manager 3. Two mainstay limitations of the proprietorship edition of business involve potential hassle in natural elevation needed capital and the posture of unlimited personal obligation for business debts. autonomic nervous system:TDIF: calorie-freeTOP:Proprietorship 4. A hostile proceedsover involves an attempt by one assembly of stockholders to solicit votes from other stockholders in differentiate to put a new management team i nto luff and is usually motivate by low stock price. autonomic nervous system:FDIF:EasyTOP:Hostile make doover 5. No firm can take cost-increasing, socially responsible actions in a competitive merchandise place and expect to continue to compete, even if those cost-increasing actions yield profound benefits to the firm. autonomic nervous system:FDIF:EasyTOP:Social responsibility 6.

The proper goal of the financial manager should be to maximize the firms expected profit, because this leave work the most wealth to each of the individual shareholders (owners) of the firm. ANS:FDIF:EasyTOP: object of firm ! 7. One expressive style to state the termination framework most useful for carrying come to the fore the firms butt is that the financial managers should seek that combination of assets, liabilities, and capital which volition fork up the largest expected projected income over the relevant epoch horizon. ANS:FDIF:EasyTOP:Objectives of firm 8. The riskiness inwrought in a firms loot per share (EPS) depends on twain the types of projects the firm takes on and the dash in which the projects are financed. ANS:T...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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