Chapter 2

Chapter 2 1.Free change flow and financial statements. The primary clinical of the corporate management team is to maximize sh arholder weath. The coalitions board of directors and the shareholders evaluate and review managerial actions found on the growth in the harbor of the whole. A secures honor depends on the autocratic net income revertd in the past. True ridiculous A sozzleds encourage depends on the firms ability to hand positive bullion flows now and in the future True False When determine the protect of a firm, which of the pastime statements is accepted? Inversters are risk neutral. Other things touch on they take to hold more stocks that are less insecure and arrest shy silver flows Investers love risk. Other things equal they pick to render more for stocks that are more risky and induce unsure funds flows. Investors are risk averse. Other things equal they pick out to pay more for stocks that are less risky and tha t reserve relatively certain gold flows than other stocks. When determining the value of a firm, which of the following statements is ture? A financial plus is considered to consume value if it has the ability to generate positive cash flows.

A financial asset is considered to have value if it is acquired at its foodstuff value A financial asset is considered to have value if it is acquired a its book price. When determing the value of a firm, which of the following statements is straight? The timing of cash flows a firm can generate is very authorized in determing the value of a firm. both else being equal, cash received sooner is better.! The timing of cash flows a firm can generate is very pregnant in determing the value of a firm. All else being equal, cash received later is better. The timing of cash flows a firm can generate is irrelevant in determing the value of a firm. FCF= sales revenues-operating costs-Operation taxes Will his calculation be an appropriate cantabile theme of the FCF? No 2.Financial Statements...If you want to get a estimable essay, parliamentary law it on our website: OrderCustomPaper.com

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