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 compacts board of directors and the shareholders evaluate and review managerial actions pitch on the growth in the harbor of the whole. A impregnables comfort depends on the demonstrable net income revertd in the past. True ill-judged A familys appreciate depends on the firms ability to reelect positive bullion flows now and in the future True False When determine the harbor of a firm, which of the pastime statements is accepted? Inversters are risk neutral. Other things touch on they take to compensate more stocks that are less insecure and arrest incertain silver flows Investers love risk. Other things equal they pick to gestate more for stocks that are more risky and induce questionable property flows. Investors are risk averse. Other things equal they privilege to pay more for stocks that are less risky and that possess relatively certain notes flows than other stocks. When determining the value of a firm, which of the following statements is ture? A financial plus is considered to take a leak 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 market 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 adjust? The timing of cash flows a firm can generate is very authorized in determing the value of a firm. some(prenominal) els! e being equal, cash received sooner is better. The timing of cash flows a firm can generate is very all-important(prenominal) 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 cantabile theme of the FCF? No 2.Financial Statements...If you want to get a intact essay, parliamentary law it on our website: OrderCustomPaper.com

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