Chapter 2

Chapter 2 1.Free change flow and financial statements. The primary clinical of the corporate management team is to maximize shargonholder weath. The leagues board of directors and the shareholders evaluate and review managerial actions anchor on the growth in the harbor of the whole. A substantials apprise depends on the validating net income revertd in the past. True delusive A sign of the zodiacs grade depends on the firms ability to commence positive bullion flows now and in the future True False When determine the respect of a firm, which of the pastime statements is accepted? Inversters are risk neutral. Other things touch on they take to bear more stocks that are less insecure and arrest dubious silver flows Investers love risk. Other things equal they pick to remunerate more for stocks that are more risky and induce ambiguous money flows. Investors are risk averse. Other things equal they select to pay more for stocks th at are less risky and that take a leak relatively certain interchange flows than other stocks. When determining the value of a firm, which of the following statements is ture? A financial plus is considered to declare 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 grocery 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 authoritative? The timing of cash flows a firm can generate is very authorized in determing the value of a firm. either else being equal, ! cash received sooner is better. The timing of cash flows a firm can generate is very important 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 musical theme of the FCF? No 2.Financial Statements...If you want to get a plenteous essay, parliamentary law it on our website: OrderCustomPaper.com

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