Which of the following are NOT ways risk management can be used to increase the value of a firm?
A. Risk management can help a firm maintain its optimal capital budget.
B. Risk management can reduce the expected costs of financial distress.
C. Risk management can help firms minimize taxes.
D. Risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments.
E. Risk management can increase debt capacity.
Answer: D
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Answer the questions below. a.Suppose the Federal Reserve raises the federal funds rate in the United States but people believe that the inflation rate will rise by more than the Fed raised the federal funds rate. What do you expect to happen to the exchange rate? Explain why. b.As the exchange rate changes in the direction you determined in part a, what happens to the prices of imports and exports in the United States and in other countries? Explain. c.What happens to net exports in the United States and in other countries that trade with the United States in the short run? In the long run? Explain.
What will be an ideal response?
Which of the following questions relates to the place element of the marketing mix?
A. Should I offer customers a discount? B. How do I want the public to view my product? C. How much inventory should I have? D. How long has my product existed? E. Do I need to hire salespeople?
Which of the following statements is correct?
a. NPV and IRR yield similar decisions for mutually exclusive projects. b. The project with the lowest IRR should be chosen. c. The project with the lowest NPV should be chosen. d. NPV and IRR yield similar decisions for independent projects. e. All of these statements are correct.
An employee overstates his reimbursable expenses in one period in order to receive needed additional cash. Since he intends to reduce his expenses the next period by the current overstatement, this act is not considered fraudulent.
Answer the following statement true (T) or false (F)