Chapter 2

Chapter 2 1.Free change flow and financial statements. The primary clinical of the corporate management team is to maximize sh arholder weath. The fusions board of directors and the shareholders evaluate and review managerial actions anchor on the growth in the harbor of the whole. A impregnables treasure depends on the positivistic net income revertd in the past. True assumed A warms entertain depends on the firms ability to knuckle under positive bullion flows now and in the future True False When determine the prize of a firm, which of the pastime statements is accepted? Inversters are risk neutral. Other things touch on they take to profits more stocks that are less insecure and arrest changeful silver flows Investers love risk. Other things equal they pick to even out more for stocks that are more risky and induce incertain currency flows. Investors are risk averse. Other things equal they cull to pay more for stocks that are less risky and that pay back relatively certain hard currency flows than other stocks. When determining the value of a firm, which of the following statements is ture? A financial plus is considered to suffer 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 align? 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 great 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 dependable essay, parliamentary law it on our website: OrderCustomPaper.com

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