Manager should attempt to maximize the value of firm

Assignment Help Financial Management

Reference no: EM132006084

1. A manager should attempt to maximize the value of the firm by changing the capital structure if and only if the value of the firm increases:

A. as a result of the change.

B. to the sole benefit of the managers.

C. to the sole benefit of the debtholders.

D. while also decreasing shareholder value.

E. while holding stockholder value constant.

2. The _________________________ technique uses compounding to measure the value of cash flows as of the end of a project’s life.

A. future value

B. present value

C. perpetuity

D. debenture

Reference no: EM132006084

Questions Cloud

Differentiate between open-end and closed-end mutual funds : Differentiate between open-end and closed-end mutual funds.

What is current share price : If the required return on this stock is 16 percent, what is the current share price?

Monthly expenditures for which they would qualify : Using a 28 percent front-end ratio, what are the total annual and monthly expenditures for which they would qualify?

Desire to maintain the ongoing value of good reputation : Explain how an agent’s desire to maintain the ongoing value of a good reputation can facilitate shareholder monitoring of the agent.

Manager should attempt to maximize the value of firm : A manager should attempt to maximize the value of the firm by changing the capital structure if and only if the value of the firm increases:

What is the firms unlevered beta : Nicholas Corporation has a beta of 1.20, the tax is 40%, What is the firms unlevered beta?

What was the remaining balance of the mortgage : Assuming that he had already made his mortgage payment that day what was the remaining balance of the mortgage?

What was the standard deviation of the risk premium : What was the standard deviation of the risk premium? What was the average risk premium?

Rising interest rates in economy cause : Rising interest rates in the economy cause the market value of outstanding bonds to also increase.

User Account

All Pages