"Shareholder wealth" in a firm is represented by
| A. | the number of people employed in the firm. |
| B. | the book value of the firm's assets less the book value of its liabilities. |
| C. | the amount of salary paid to its employees. |
| D. | the market price per share of the firm's common stock. |
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Option: D Explanation : Click on Discuss to view users comments. |
Which statement is true about Financial Management?
| A. | An option is a claim without any liability |
| B. | The wealth of a firm is defined as the market price of the firm's stock |
| C. | The maximisation of profit is often considered as an implies objective of a firm |
| D. | All of the above |
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Option: D Explanation : Click on Discuss to view users comments. |
In the context of imperfect and asymmetric information, how does the stock market react to the signal of a cut in dividend by a company?
| A. | The market sells, share price is lowered |
| B. | The market buys, share price is raised. |
| C. | The market does not react, price remains the same. |
| D. | None of the above. |
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Option: D Explanation : Click on Discuss to view users comments. MARIAM KHALID said: (1:42pm on Monday 23rd October 2017)
WHEN COMPANY PAY LESS DIVIDEND ITS MEAN THEY WOULD DO MORE INVESTMENT INTERNALLY MAKING ROOTS STRONG MARKET PRICE SHOULD HIGH DEMAND INCREASE.
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Which is the assumption of Modigliani and Miller approach to cost of capital?
| A. | The capital markets are assumed to be perfect |
| B. | The firms can be classified into homogeneous risk class |
| C. | All Investor have the same expectations from a firm's net operating income which is necessary to evaluate the value of a firm |
| D. | All of the above |
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Option: D Explanation : Click on Discuss to view users comments. |
