Author Question: Assume that you went to Las Vegas and hit the jackpot for 5 million. Further assume that you were ... (Read 63 times)

Alygatorr01285

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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

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Answer to Question 1

A

Answer to Question 2

C
Explanation: C) to maximize shareholder's wealth



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