finance chapter 1 hw

Symone sold shares of Naraghi Corporation stock to Aleena. The stock is listed on the NYSE. This trade occurred in which one of the following? Multiple Choice -Primary, dealer market -Secondary, dealer market -Primary, auction market -Secondary, auction market -Secondary, OTC market

Secondary, auction market

Which one of the following statements concerning stock exchanges is correct? Multiple Choice -Nasdaq is a broker market. -The NYSE is a dealer market. -The exchange with the strictest listing requirements is Nasdaq. -Some large companies are listed on Nasdaq. -Most debt securities are traded on the NYSE.

Some large companies are listed on Nasdaq.

Shareholders can replace company management by implementing: Multiple Choice -stock options. -promotions. -the Sarbanes-Oxley Act. -an agency play. -a proxy fight.

a proxy fight.

Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes. Multiple Choice -Compensation based on the value of the stock -Stock option plans -Threat of a company takeover -Threat of a proxy fight -Increasing managers' base salaries

Increasing managers' base salaries

Which one of the following best states the primary goal of financial management? Multiple Choice -Maximize current dividends per share -Maximize the current value per share -Avoid financial distress -Maximize profit -Maintain steady growth while increasing current profits

Maximize the current value per share

Public offerings of debt and equity must be registered with the: Multiple Choice -New York Board of Governors. -Federal Reserve. -NYSE Registration Office. -Securities and Exchange Commission. -Market Dealers Exchange.

Securities and Exchange Commission.

A firm's mixture of debt and equity financing is the result of its ______ decisions. Multiple Choice -working capital management -cash management -cost analysis -capital budgeting -capital structure

capital structure

Agency problems are most likely to be associated with: Multiple Choice -sole proprietorships. -general partnerships. -limited partnerships. -corporations. -limited liability companies.

corporations.

Financial managers should primarily focus on the interests of: Multiple Choice -themselves -the vice president of finance. -their immediate supervisor. -shareholders. -board of directors

shareholders

In a typical corporate organizational structure: Multiple Choice -the vice president of finance reports to the chair of the board. -the chief executive officer reports to the president. -the controller reports to the chief financial officer. -the treasurer reports to the president.

the controller reports to the chief financial officer.