11/19/25, 7:53 AM FINA 3770 EXAM fully solved & updated 2025-2026(latest version verified for accuracy) (Questions + Answers) Solved 100% Corr…
FINA 3770 EXAM fully solved & updated 2025-
2026(latest version verified for accuracy)
(Questions + Answers) Solved 100% Correct!!
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Terms in this set (16)
Financial management TRUE
deals with the
maintenance and creation
of economic value or
wealth
Each financial decision FALSE
made by a corporate
manager can be evaluated
by its direct impact on the
corporation's stock price.
The fundamental goal of a FALSE
business is to maximize
the retained earnings
available to the
corporation's
shareholders.
Shareholder wealth TRUE
maximization means
maximizing the price of
the existing common
stock.
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, 11/19/25, 7:53 AM FINA 3770 EXAM fully solved & updated 2025-2026(latest version verified for accuracy) (Questions + Answers) Solved 100% Corr…
It is important to evaluate TRUE
a corporate manager's
financial decision by
measuring the effect the
decision should have on
the corporation's stock
price if everything else
were held constant.
Corporate managers FALSE
should accept investment
projects that maximize
profits in the short run
because of the time value
of money.
The goal of the firm's TRUE
financial managers should
be the maximization of the
total value of the firm's
stock.
The payment of a dividend FALSE
to current shareholders
will have no impact on a
corporation's share price
because the cash paid is
not available to future
potential shareholders
who may want to buy the
corporation's stock.
One problem with FALSE
maximization of
shareholder wealth as a
goal is that it ignores risk
taken by the firm's
financial decisions.
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FINA 3770 EXAM fully solved & updated 2025-
2026(latest version verified for accuracy)
(Questions + Answers) Solved 100% Correct!!
Save
Terms in this set (16)
Financial management TRUE
deals with the
maintenance and creation
of economic value or
wealth
Each financial decision FALSE
made by a corporate
manager can be evaluated
by its direct impact on the
corporation's stock price.
The fundamental goal of a FALSE
business is to maximize
the retained earnings
available to the
corporation's
shareholders.
Shareholder wealth TRUE
maximization means
maximizing the price of
the existing common
stock.
https://quizlet.com/1110494354/fina-3770-exam-fully-solved-updated-2025-2026latest-version-verified-for-accuracy-questions-answers-solved-100-cor… 1/6
, 11/19/25, 7:53 AM FINA 3770 EXAM fully solved & updated 2025-2026(latest version verified for accuracy) (Questions + Answers) Solved 100% Corr…
It is important to evaluate TRUE
a corporate manager's
financial decision by
measuring the effect the
decision should have on
the corporation's stock
price if everything else
were held constant.
Corporate managers FALSE
should accept investment
projects that maximize
profits in the short run
because of the time value
of money.
The goal of the firm's TRUE
financial managers should
be the maximization of the
total value of the firm's
stock.
The payment of a dividend FALSE
to current shareholders
will have no impact on a
corporation's share price
because the cash paid is
not available to future
potential shareholders
who may want to buy the
corporation's stock.
One problem with FALSE
maximization of
shareholder wealth as a
goal is that it ignores risk
taken by the firm's
financial decisions.
https://quizlet.com/1110494354/fina-3770-exam-fully-solved-updated-2025-2026latest-version-verified-for-accuracy-questions-answers-solved-100-cor… 2/6
