FIN 3104 Final Exam MFL Questions with Answers
Long-run goal of a firm is to ___ -Answer- maximize shareholder wealth
Maximizing shareholder wealth means maximizing the ___ -Answer- market value of the firm's commo
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FIN 3104 Final Exam MFL Questions with Answers
Long-run goal of a firm is to ___ -Answer- maximize shareholder wealth
Maximizing shareholder wealth means maximizing the ___ -Answer- market value of the firm's common stock
Advantages of the corporation include ___ -Answer- A and C
-transferability of ownership
-unlimited liability
Disadvantages of the partnership are ___ -Answer- B and D
-lack of permanence
-unlimited liability
Which method is NOT a method by which securities are distributed to final investors? -Answer- upset agreement
Which of the following is generally NOT an advantage of private placements? -Answer- interest costs
Which of the following is generally not a disadvantage of private placements? -Answer- speed
What are the two major categories of flotation costs? -Answer- I and II
-underwriter's spread
-issuing costs
Flotation costs are the highest on ___ -Answer- common stock
Identify the major reasons why underdeveloped countries remain underdeveloped -Answer- II and III
-underdeveloped countries lack effective financial market systems
-underdeveloped countries lack political stability
What are the profit margins? What are the different types of profit margins? -Answer- The profit margins are the profit-to-sales relationships. Three types are gross profit margin, operating profit margin, and net profit margin.
The purpose of doing a financial analysis is all of the following EXCEPT: -Answer- A and B only
-restating accounting data in relative terms so that comparisons can be made with firms of different sizes and with the same firm over time
-to identify some of the financial strengths and weaknesses of a company
Which of the following might use financial ratios for the purposes stated? -Answer- ALL OF THE ABOVE
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