Multiple choice

Question 1

What can a corporation, as a legal entity, not do?

Answer 1

Vote

Question 2

What can an analyst use to approximate opportunity costs?

Answer 2

Market values

Question 3

Venture capital investment was highest in year:

Answer 3

2000

Question 4

The “rightest” position is that the market will reward firms for having:

Answer 4

High dividend yield

Question 5

What are two ways an investor can create the effect of leverage

Answer 5

• Buying equity in a leveraged firm

- Borrowing on his/her account