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Question 1 3 out of 3 points To reduce Agency Problems, executive compensation should be designed to:
Correct Answer: create incentives so that managers act like owners of the firm. Question 2 3 out of 3 points In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return.
Correct Answer: profits (cash flows) Question 3 3 out of 3 points The primary objective of a for-profit firm is to ___________.
Correct Answer: maximize shareholder value Question 4 0 out of 3 points The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn?*…show more content…*

Correct Answer: Decrease the required rate of return (ke). Question 10 3 out of 3 points Economic profit is defined as the difference between revenue and ____. Correct Answer: total economic cost Question 11 0 out of 3 points The approximate probability of a value occurring that is greater than one standard deviation from the mean is approximately (assuming a normal distribution) Correct Answer: 15.87% Question 12 3 out of 3 points The ____ is the ratio of ____ to the ____. Correct Answer: coefficient of variation; standard deviation; expected value Question 13 3 out of 3 points The closest example of a risk-free security is Correct Answer: U.S. Government Treasury bills Question 14 0 out of 3 points Generally, investors expect that projects with high expected net present values also will be projects with Correct Answer: high risk Question 15 3 out of 3 points A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. Correct Answer: marginal costs Question 16 3 out of 3 points The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are: Correct Answer: the coefficient of variation is a measure of relative risk whereas the standard deviation is a measure of absolute risk Question 17 3 out of 3 points The

Correct Answer: Decrease the required rate of return (ke). Question 10 3 out of 3 points Economic profit is defined as the difference between revenue and ____. Correct Answer: total economic cost Question 11 0 out of 3 points The approximate probability of a value occurring that is greater than one standard deviation from the mean is approximately (assuming a normal distribution) Correct Answer: 15.87% Question 12 3 out of 3 points The ____ is the ratio of ____ to the ____. Correct Answer: coefficient of variation; standard deviation; expected value Question 13 3 out of 3 points The closest example of a risk-free security is Correct Answer: U.S. Government Treasury bills Question 14 0 out of 3 points Generally, investors expect that projects with high expected net present values also will be projects with Correct Answer: high risk Question 15 3 out of 3 points A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. Correct Answer: marginal costs Question 16 3 out of 3 points The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are: Correct Answer: the coefficient of variation is a measure of relative risk whereas the standard deviation is a measure of absolute risk Question 17 3 out of 3 points The

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## ACC 305 Strayer All Quizzes Midterm and Final Exams Strayer Latest

6965 Words | 28 PagesAnalysis Chapter 23: Statement of Cash Flows Chapter 24: Full Disclosure in Financial Reporting All Chapters included with answers. Purchase here: http://xondow.com/ACC-305-Strayer-Test-Bank-ACC305TB.htmChapter 17: Investments TRUE-FALSE—Conceptual 1.Debt securities include corporate bonds and convertible debt, but not U.S. government securities. 2.Trading securities are securities bought and held primarily for sale in the near term to generate income on short-term price differences. 3.Unrealized

### ACC 305 Strayer All Quizzes Midterm and Final Exams Strayer Latest

6965 Words | 28 Pages