Cash flows and profits are synonymous; in other words, higher cash flows equal higher profits. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Earnings before taxes, or taxable income, is equal to operating income minus financing costs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Over-the-counter markets include all security markets, with the exception of organized exchanges. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The more debt a company uses to finance its assets, the lower will be its operating income due to higher interest expense. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Shareholder selection committees select potential board of director nominees ensuring that board members will monitor management sufficiently to protect shareholder interests. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
For a firm to have its securities listed on an exchange, it must meet certain requirements. These usually include measures of profitability, size, market value, and public ownership. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Managers should not be concerned with business ethics because ethical behavior is inconsistent with the primary goal of maximizing shareholder value. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The vast majority of corporate bond business takes place over the counter. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
One of the problems associated with maximization of total current stock value is that it ignores the timing of a project’s return. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
