FIR 3410 Test 1
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The market price of a share of common stock is determined by:
individuals buying and selling the stock.
The long-run objective of financial management is to:
maximize the value of the firm's common stock.
A(n)__________ would be an example of a principal, while a(n) ______ would be an example of an agent.
shareholder; manager
The focal point of financial management in a firm is:
the creation of value for shareholders
"Shareholder wealth" in a firm is represented by:
the market price per share of the firm's common stock.
