UPENN: LOOSE LEAF CORP.FIN W/CONNECT
17th Edition
ISBN: 9781260361278
Author: Ross
Publisher: McGraw-Hill Publishing Co.
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Chapter 1, Problem 3CQ
Summary Introduction
To evaluate the statement:
The managers must not concentrate on the
Introduction:
Any profits that arise during a course of time, that is, less than twelve months, are considered short-term profits or gains. Any profits that arise during a course, that is, more than 12 months, are considered long-term profits or gains.
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Evaluate the following:Managers should not focus on the current stock value because doing so will lead to an over emphasis on short term profits at the expense o long term profits
Explain in full detail why the following statement is false: "Financial managers should not focus on the present stock value of the company. Instead, they should focus on the profitability of the company. Doing so will result in increasing the value of the stock.
State whether the following statements are true or false.
8) Trade-Off between Risk-Return is the main principle to maximize the firm value.
9) Reduce inventory and use the proceeds to pay off a part of current liabilities will lead to increasethe quick ratio.
10) Unethical Behavior of the manager includes using the information that not available to the publicto make money.
Chapter 1 Solutions
UPENN: LOOSE LEAF CORP.FIN W/CONNECT
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