FIN 571 TUTOR Let's Do This /fin571tutor.com FIN 571 TUTOR Let's Do This /fin571tutor.com | Page 9

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
4. Financial managers primar ily create firm value by:
maximizing current sales.
investing in assets that generate cash in excess of their cost.
5 First City Bank pays 7 percent simple interest on its savings account
balances, whereas Second City Bank pays 7 percent interest compounded
annually.
If you made a $59,000 deposit in each bank, how much more money would
you earn from your Second City Bank account at the end of 9 years? (Do
not round intermediate calculations and
6. What is the future value of $3,136 invested for 12 years at 6.50 percent
compounded annually?
7. What is the present value of $12,750 to be received 3 years from today if
the discount rate is 5.50 percent?
8. Six months ago, you purchased 1,200 shares of ABC stock for $21.20 a
share and have received total dividend payments of $.60 a share. Today,
you sold all of your shares for $22.20 a share. What is your total dollar
return on this investment?
9 Six months ago, you purchased 100 shares of stock in ABC Co. at a price
of $43.89 a share. ABC stock pays a quarterly dividend of $.10 a share.