On Introduction to financial management Statement I: Profit maximization is a short-term goal. It can be achieved at the expense of the firm and its stockholders. Statement II: A firm's stock price is not affected by factors such as present and future earnings per share, the timing, duration, and risk of these earnings, and dividend policy. Statement III: A major disadvantage of the corporation is the double taxation on its earnings and the dividend paid to its owners (stockholders).

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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CHOICES

A. Only Statement I is correct
B. Only Statement II is false
C. Statements II and III are false
D. Only Statement III is false
E. All statements are correct

On Introduction to financial management
Statement I: Profit maximization is a short-term goal. It can be achieved at the expense of
the firm and its stockholders.
Statement II: A firm's stock price is not affected by factors such as present and future
earnings per share, the timing, duration, and risk of these earnings, and dividend policy.
Statement III: A major disadvantage of the corporation is the double taxation on its
earnings and the dividend paid to its owners (stockholders).
Transcribed Image Text:On Introduction to financial management Statement I: Profit maximization is a short-term goal. It can be achieved at the expense of the firm and its stockholders. Statement II: A firm's stock price is not affected by factors such as present and future earnings per share, the timing, duration, and risk of these earnings, and dividend policy. Statement III: A major disadvantage of the corporation is the double taxation on its earnings and the dividend paid to its owners (stockholders).
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