The more you have invested in a stock, the more likely you are to be interested in monitoring the company's management to ensure they are maximizing shareholder wealth.   Question 28 options:   True   False

QUESTION 1 INDICATE THE CORRECT ANSWER BY CHOOSING ONE OF THE FOUR OPTIONS A,B,C OR D. 1.1. The primary goal of the financial manager is _____A. minimising risk.B. maximising profit.C. maximising wealth.D. minimising return. 1.2. Shareholders receive realisable returns through _____A. earnings per share and cash dividends.B. increase in share price and cash dividends.C. increase in share price and earnings per share.D. profit and earnings per share. 1.3. The wealth of the owners of a company is represented by _____A. profits.B. earnings per share.C. share value.D. cash flow. 1.4. Wealth maximisation as the stated goal of a company implies enhancing the wealth of the _____A. board of directors.B. company’s employees.C. national government.D. company’s shareholders. 1.5. The goal of profit maximisation would result in prioritising _____A. cash flows available to shareholders.B. risk of the investment. C. earnings per share.D. timing of the returns. 1.6. Profit maximisation as a goal is…

A stockbroker advises a client to “buy preferred stock. . . . With that type of stock, . . . [you] will never have to worry about losing the dividends.” Is thebroker correct?

Case Study #3: Chapter 6 Business Analysis -  A business can be valued by capitalizing its earnings stream (see example 6.15).  How might you use the same idea to value securities, especially the stock of large publicly held companies? Is there a way to calculate a value that could be compared to the stock’s market price that would tell an investor whether it’s a good buy? (If the market price is lower than the calculated value, the stock is a bargain.)  What financial figures associated with shares of stock might be used in the calculation. Consider the per share figures and ratios discussed in chapter 3 including EPS, dividends, book value per share, etc.  Does one measure make more sense than the others? What factors would make a stock worth more or less than your calculated value?

What are three techniques stockholders can use to motivate managers to maximizetheir stock’s long-run price?

*which of the following statements is true? Select one: O Investors sell a stock when required return is less than expected return and buy a stock when required return above expected return O Investors sell a stock when it is under-valued and buy it when it is over-valued. O Investors buy a stock when it is under-valued and sell it when it is over-valued None of the answers are correct

Please answer with true or false 1. Common stocks and preferred stocks come with the same voting right 2. The shorter your time horizon , the less conservative you should be in investing your money. 3.If there is a little amount of risk in your investment, there will also a relatively little potential amount of return. 4.Your personality should be considered in making an investment 5. An investors financial position will also affect his or her objectives .

QUESTION 1 If efficient markets hypothesis is correct, the price of a stock can be predicted ahead of time with careful analysis and proper financial training. is determined by the lowest successful bidder. fully reflects all available relevant information. is a result of none of these.

A stock's required rate of return The part of a stock's risk that can be eliminated is know as _______________risk   The portion of the stock's risk that cannot be eliminated is called ___________ risk Answer 2 Question 5 Market risk is also referred to as ________________ risk Answer 3 Question 5 The ______ coefficient measures a stock's relative volatility as compared with a stock's market index.

Before you put your money down and purchase a stock, what should you know about it?