1) The objectives or goals of financial management are to maximize a

1) The objectives or goals of financial management are to maximize

a. sales

b. profits

c. owner.s wealth

d. total assets

2. The two basic types of stock are

a. Class A and Class B

b. Class A Common and Class B Common

c. Convertible and Common

d. Common and Preferred

3. If you borrow $500 for one year and agree to repay the lender $540 at the end of one year, the interest cost of borrowing is

a. 8% per year

b. $40

c. neither (a) nor (b)

d. both (a) and (b)

4. Using the net present value method, the decision to accept an "accept-reject" investment proposal would occur when the net present value is

a. greater than or equal to zero

b. less than or equal to zero

c. equal to zero

d. less than zero

5. A short-term unsecured promissory note issued by a corporation with a high credit standing is called a

a. money market mutual fund

b. commercial paper

c. repurchase agreement

d. negotiable certificate of deposit