fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
D) Maintain steady earnings growth.
E) Maximize the current value per share of the existing stock.
63) An individual who buys and sells stocks for his/her own account is a:
A) Dealer.
B) Agent.
C) Broker.
D) Auctioneer.
E) OTC broker.
64) Ensuring that a firm has sufficient cash available on a daily basis is part of:
A) Capital budgeting.
B) Working capital management.
C) Business organization.
D) Capital structure.
E) Organizational structure.
65) Which of the following would be considered a secondary market transaction?
A) Buy or sell orders to a broker for shares listed on the TSX.
B) Buy or sell orders only for corporate bonds.
C) Buy or sell orders for corporate warrants.
D) Buy or sell orders for shares listed on the TSX or corporate bonds.
E) Buy or sell orders only for call or put options.
66) A dealer is a person who:
A) Conducts a trade on behalf of another individual.
B) Buys and sells but does not own the commodity being bought or sold.
C) Buys and sells on behalf of the original issuer of the commodity being bought or sold.
D) Buys and sells for themselves, at their own risk.
E) Buys and sells strictly on the trading floor of an exchange.
67) According to the statement of financial position model of the firm, corporate finance can be thought of as an analysis of three primary subject areas. Which of the following correctly lists these areas?
A) Capital structure, capital budgeting, security analysis.
B) Capital budgeting, capital structure, capital spending.
C) Capital budgeting, capital structure, working capital management.
D) Capital structure, net working capital, capital rationing.
E) Capital budgeting, capital spending, net working capital.
68) The decision of which lender to use and which type of long-term loan is best for a project is part of:
A) Working capital management.
B) The net working capital decision.
C) Capital budgeting.
D) A controller's duties.
E) Capital structure decision.
69) The decision to issue debt rather than additional shares of stock is an example of:
A) Working capital management.
B) A net working capital decision.
C) Capital budgeting.