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Public companies may offer their shares to the public and the shares may bought and sold on the Stock Exchange. Private companies are not allowed to offer their shares to the public and the shares can not therefore be bought and sold on the Stock E a. b. c. For al Il corporations, shareholders and management may be one and the same. d. Shareholders will not welcome higher short-term profits if long-tertm profits are damaged a. Manager c. Government 4. Which of the following is not a stakeholder of a corporation? d. Competitor S. A credit loan that charges a monthly interest rate of 1% . which of the following statements is correct? a. The Annual Percentage Rate is 12%, the effective annual rate is 12%. b. The Annual Percentage Rate is 12.68%, the effective annual rate is 1268% c, The Annual Percentage Rate is 12%, the effective annual rate is 12.68%. d, The Annual Percentage Rate is 12.68%, the effective annual rate is 12%. 6. Which of the following statements about internal rate of return (TRR) is not correct? a. Accept project if IRR is positive. b. Accept project if IRR is greater than opportunity cost of capital c. IRR cant rank mutually exclusive projects. d. The simple IRR rule cant be used in cases of multiple IRRs or an upwad-sloping NPV profile. 7. Which of the following statements about inflation is correct? The percentage increase in the CPI from one year to the next year measures the rate of inflation. Real dollars refer to the amount of purchasing power. Nominal interest rate sets the actual number of doliars you will be paid with no offset for future inflation. a. b. c. d. Ali of the above are correct 8. Which of the following is the characteristic of common stock? The right to the residual income before preference shareholders have been a. paid b. Unlimited liability in the case of the corporation going bankrupt. c. Voting rights to elect the board of directors d. The right to the residual income before creditors have been paid . Which one of the following statements is true regarding yield to maturity? a. The yield to maturity is defined as the discount rate that makes the present 第2页共10页


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