Author Question: Assume that you went to Las Vegas and hit the jackpot for 5 million. Further assume that you were ... (Read 75 times)

Alygatorr01285

  • Hero Member
  • *****
  • Posts: 564
Assume that you went to Las Vegas and hit the jackpot for 5 million. Further assume that you
  were offered a choice to receive the 5 million today, or receive it in two years. According to one of
  the principles of finance, which would you take?
 
  A) the 5 million today because it would be worth more than if you would receive it in two years
  B) the 5 million in two years because it would be worth more than if you would receive it today
  C) You would be indifferent as to when you would receive the 5 million.
  D) the 5 million in two years because you would be afraid of spending it all right away

Question 2

The primary goal of a publicly owned firm is:
 
  A) maximize profits.
  B) minimize shareholder risk.
  C) value creation.
  D) maximize revenues.


aruss1303

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

A

Answer to Question 2

C
Explanation: C) to maximize shareholder's wealth



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

For a complete list of videos, visit our video library