Stocks listed on the New York Stock Exchange must be traded exclusively on the NYSE in order to maintain the high standards set by the exchange. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
If two companies have the same net income and the same level of risk, they must also have the same stock price or the market is not in equilibrium. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
One advantage of being listed on the NYSE is that all trades are made in an auction setting with face-to-face trading between individuals on the floor of the stock exchange. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
An income statement reports a firm’s cumulative revenues and expenses from the inception of the firm through the income statement date. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
One advantage of organized stock exchanges is increased stock price volatility resulting from the efficient exchange of pricing information. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Profits represent money that can be spent, and as such, form the basis for determining the value of financial decisions. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Owners equity increases each period by the amount of the corporation’s positive net cash flow. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
If two companies have the same revenues and operating expenses, their net incomes will still be different if one company finances its assets with more debt and the other company with more equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The root cause of agency problems is conflicts of interest. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Investors will be indifferent between two investments if both investments have the same expected return. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
