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WPC 150: Finance Quiz with 100% correct answers A+ rated
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WPC 150: Finance Quiz with 100% correct answers A+ rated
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WPC 150: Finance Quiz with 100%correct answers A+ rated
Costs associated with the conflicts of interest between the managers and the shareholders of a
corporation are called: - correct answer ✔✔agency costs.
One way to mitigate agency problems is to include shares of company stock in executive compensation
packages. - correct answer ✔✔True
Present value is defined as: - correct answer ✔✔future cash flows discounted to the present by an
appropriate discount rate.
Understanding basic principles of finance is important for - correct answer ✔✔All of the above
If stock markets are efficient, which of the following statements is false - correct answer ✔✔You can beat
the market by adopting an active trading strategy
If you buy enough different stocks, you can diversify out all risk in the stock market - correct answer
✔✔False
A dollar today is worth more than a dollar tomorrow if the interest rate is positive. - correct answer
✔✔True
Which of the following groups are referred to as stakeholders? - correct answer ✔✔employees,
customers, shareholders, and suppliers
The discount rate is higher for safe investments than for risky ones. - correct answer ✔✔False
Which of the following assets is tangible? - correct answer ✔✔ExxonMobil's corporate headquarters
building
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