Primary goal of financial management is to maximize profits

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Reference no: EM131958953

1. Debt Management Ratios Zoe's Dog Toys, Inc. reported a debt to equity ratio of 1.70 times at the end of 2008. If the firm's total assets at year-end were $49.9 million, how much of their assets are financed with equity?

2. When focusing on maximizing shareholder wealth, we do this by minimizing our costs. True False

3. The primary goal of financial management is to maximize profits. True False

4. One of the key factors of success for a firm is being able to take advantage of consumers and suppliers through market power. If we can become the dominant player in the industry, we can force suppliers to meet our demands and we can raise prices on consumers (increasing margins) as they have no reasonable alternatives for our products.

True

False

Reference no: EM131958953

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