COMPLETE REAL EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) ALREADY GRADED
A+ / NEWEST EXAM / JUST RELEASED!!
A financial manager is considering two projects, A and B. A is
expected to add
$2 million to profits this year while B is expected to add $2
million to profits this
year while B is expected to add $1 million to profits this
year. Which of the
following statements is MOST
correct?
A) The manager should select project A because it
maximizes profits.
B) The manager should select the project that maximizes long-
term profits, not
just one year of
profits.
C) The manager should select project A or he
is irrational.
D) The manager should select the project that causes the
stock price to
increase the most, which could be A or B. - ANSWER-D) The
manager should
select the project that causes the stock price to increase the
most, which could
, be A or
B.
Shareholder wealth maximization
means A) maximizing earnings per
share.
B) maximizing dividends per share.
C) maximizing the price of existing common stock.
D) maximizing stockholders equity. - ANSWER-C) maximizing
the price of existing common stock.
The goal of the firm
should be
A) maximization of profits (net income
per share).
B) maximization of shareholder
wealth.
C) maximization of market
share.
D) maximization of sales. - ANSWER-B) maximization of
shareholder wealth.
Financial management deals with the maintenance and
creation of economic
value or wealth - ANSWER-
TRUE