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- If you wish to maximize the owners' wealth as a manager, you will; a. seek to increase the firm's EPS only b. No option is correct c. seek to cut costs only d. seek to invest wiselyWhich of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O b. maximize dividend payments Oc minimize expenses O d. satisfaction of suppliersIf a firm could maximize either its current market price or its intrinsic value, whatwould stockholders (as a group) want managers to do? Explain.
- Multiple Choice Questions 1. The following are the factors to be considered in Suitability, except A. Environment B. Capabilities C. Expectations D. Scenarios 2. The ____________ for a firm is the internal rate of return on existing investments, based on real cash flows. A. cash flow return on investment (CFROI) B. Economic Value Added (EVA) C. Total Shareholders Return D. Return on Investment 3. The elements that must be considered in using EVA are as follows, except ___________. A. Reasonableness of earnings B. Appropriate cost of Capital C. Volatility of the market D. None of the aboveis to decide whether the firm should distribute all profits or retain them or distribute a portion and retain the balance O a. Investment Decision Ob. Financing Decision O c.Dividend Decision Od. Liquidity Decision.The objectives of financial management are Select one: O a. None of the options O b. Profit maximization and wealth maximization O c. Wealth maximization O d. Maximize profits and reduce the employees O e. Profit maximization
- which one is correct please confirm? QUESTION 30 The dividend ____ states that investors will tend to be attracted to firms that have dividend policies consistent with the investor's objectives. a. "clientele effect" b. "informational content" c. passive residual theory d. signalBased on the assumption efficient capital market is characterized by rationality and risk aversion, how does a company’s management select projects to maximize their owners (shareholders) wealth? please cite sourceswhich one is correct please confirm? QUESTION 29 The dividend ____ states that investors will tend to be attracted to firms that have dividend policies consistent with the investor's objectives. a. "informational content" b. passive residual theory c. "clientele effect" d. signal
- The wealth maximization objective of a firm is superior to its profit maximization objectives.Do you agree? ExpalinWhich of the following actions should a manager take to optimize the firm's value? * Changing the capital structure if and only if the firm's value rises. Changing the capital structure if and only if the firm's value rises to the advantage of inside management Changing the capital structure if and only if the firm's value increases solely to the benefit of debtholders. Changing the capital structure if and only if the firm's value increases, even if it lowers stockholders' value. Changing the capital structure if and only if the firm's value grows and stockholder equity remains stable.____________ is a short-term goal. It can be achieved at the expense of the firm and its stockholders * a. Shareholders wealthb. Dividend Declarationc. Retained Earningsd. Profit Maximizatione. Profit Sharing