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41. The cost of monitoring management is considered to be a (an)
bankruptcy cost.
transaction cost.
agency cost.
institutional cost.
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42. One potential problem with sensitivity analysis is that it generally looks at sensitivity "one variable at a time." However, one way to judge the sensitivity of results to simultaneous changes in two variables, at least, is to construct an _________.
NPV profile
NPV sensitivity matrix
NPV sensitivity graph
All of the above
43. A call provision, a sinking fund, and/or conversion are used to retire
bonds and preferred stock.
bonds and common stock.
preferred stock and common stock
only common stock.
44. Payback reciprocal computed by
Annual Cash Inflow/100
Cash/Annual Cash Inflow
Annual Cash Inflow/Total Investment
Profit/Sales x 100
45. "Shareholder wealth" in a firm is represented by
the number of people employed in the firm.
the book value of the firm's assets less the book value of its liabilities.
the amount of salary paid to its employees.
the market price per share of the firm's common stock.
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