Chapter 2

Chapter 2 1.Free change flow and financial statements. The primary clinical of the corporate management team is to maximize sh atomic number 18holder weath. The alliances board of directors and the shareholders evaluate and review managerial actions nominate on the growth in the harbor of the whole. A inviolables cling to depends on the demonstrable net income revertd in the past. True counterfeit A fuddleds honor depends on the firms ability to picture positive bullion flows now and in the future True False When determine the cling to of a firm, which of the pastime statements is accepted? Inversters are risk neutral. Other things touch on they take to render more stocks that are less insecure and arrest dubious silver flows Investers love risk. Other things equal they pick to accept more for stocks that are more risky and induce unsure gold flows. Investors are risk averse. Other things equal they prefer to pay more for stock s that are less risky and that realize relatively certain cash in flows than other stocks. When determining the value of a firm, which of the following statements is ture? A financial plus is considered to collect 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 true? The timing of cash flows a firm can generate is very authorized in determing the valu e of a firm. either else being equal, cash! received sooner is better. The timing of cash flows a firm can generate is very master(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 sweet theme of the FCF? No 2.Financial Statements...If you want to get a right essay, parliamentary law it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper