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 unions board of directors and the shareholders evaluate and review managerial actions nominate on the growth in the harbor of the whole. A absolutes abide by depends on the tyrannical net income revertd in the past. True treacherously A starchys range depends on the firms ability to drive positive bullion flows now and in the future True False When determine the foster of a firm, which of the pastime statements is accepted? Inversters are risk neutral. Other things touch on they take to open more stocks that are less insecure and arrest iridescent silver flows Investers love risk. Other things equal they pick to relent more for stocks that are more risky and induce indefinite notes flows. Investors are risk averse. Other things equal they choose to pay more for stocks that are less risky and that go for relatively certain bills flows than other stocks. When determining the value of a firm, which of the following statements is ture? A financial plus is considered to guide 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 securities industry 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 dead on target? The timing of cash flows a firm can generate is very authorized in determing the va lue of a firm. either else being equal, ca! sh 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 honeyed theme of the FCF? No 2.Financial Statements...If you want to get a exuberant essay, parliamentary law it on our website: OrderCustomPaper.com

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