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FIN 571 Final Exam Guide (New)
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1.A proxy fight occurs when:
the board of directors disagree on the members of the management
team.

2. A stakeholder is any person or entity:

3.Which one of the following is least apt to help convince managers
to work in the best interest of the stockholders?
threat of a proxy fight
pay raises based on length of service
implementation of a stock option plan

4.Financial managers primarily create firm value by:
maximizing current sales.
investing in assets that generate cash in excess of their cost.