Carrington and Genevieve agree that they would like to try to increase the value of the company stock. Like many small business owners, they want to retain control of the company and do not want to sell stock to outside investors. They also feel that the company's debt is at a manageable level and do not want to borrow more money. What steps can they take to increase the price of the stock? Are there any conditions under which this strategy would not increase the stock price?

In developing a compensatory share option plan, a company's objective is to motivate executives and employees to manage the company in a way that increases stock price. to decrease employee turnover. to enhance compensation packages without having to expend cash. to do all of these options.

A retiree believes that investing in a non-dividend paying growth firm, which requires the periodic sale of stock for income, will eventually lead to a loss of all shares. Explain the flaw in this logic.

1. How is hiring the “next generation” of Chinese elites different from practices here in North America. Is it the same as Clinton’s daughter securing a job at a hedge fund company? 2. What are some of the moral principles involves here and what are some of the consequences of this practice? How does any company stay competitive if others choose to conduct unethical business practices?

Why is the study of financial management important? Offer examples of how poor financial management can ruin a company. Provide specific real-life examples to back up your assertions.

Which of the following statements is false? Group of answer choices a.If management does not consider the needs of the bondholders of a firm, they could end up destroying shareholder value b.If management chooses to ignore the needs of bondholders when structuring a firm, the firm can be expected to have to pay a higher interest rate on its debt                                                    c.In a perfect capital market, if a firmʹs current capital structure is not optimal, one can expect that firm to be a takeover target d.Management should focus only on the needs of a firmʹs shareholders since they are the true owners of the firm and, as such, they elect the firmʹs directors

According to Modigliani and Miller, a firm's dividend policy is irrelevant:   if the financial markets are inefficient   if the financial markets are perfect   if the financial markets are efficient   if all investors are rational   because dividends are discretionary

Tesla Inc. is thinking about acquiring Lithium Power Corp. Tesla's VP thinks that it is going to add value to the firm because Lithium Power has a relatively low P/E ratio and is earnings accretive. As Tesla's shareholder, do you agree with what the VP says? Explain.

Which of the following makes this a true statement? In this slightly more realistic world with corporate taxes, managers can: Multiple Choice   maximize the firm's value by taking on as much equity as possible.   maximize the firm's value by taking on as much debt as possible.   minimize the firm's value by taking on as much debt as possible.   maximize the firm's value by financing only with debt.

Which of the following statements is most often the case? a0Socially responsible investing gives poorer returns than non-socially responsible investing. b)Investors are more short-term focused and so socially responsible investing should not be a factor in their investment portfolio. c)Socially responsible businesses tend to post higher profits than those not focused on social responsibility. d)Companies that are not socially responsible will have better profits, but have a moral obligation to society.