Ms. Newcastle has $60,000 income this year and $40,000 next year. The market interest rate is 10% per year. Suppose Ms. Newcastle wishes to consume $62,000 next year. What will be her consumption this year?

Corporations, potentially, have infinite life because

Conflicts of interest between shareholders and managers of a firm result in:

This book is mainly about

Generally, a corporation is owned by the: I) Managers; II) Board of Directors; III) Shareholders

The treasurer usually oversees the following functions of a corporation except: I) Preparation of financial statements; II) Investor relationships; III) Cash management; IV) raising new capital

The controller is usually responsible for the following functions of a corporation : exceptI) Preparation of financial statements; II) Internal accounting; III) Cash management; IV) Taxes

The following are examples of real assets: I) Machinery; II) Office buildings; III) Warehouse; IV) Common stock

The financial goal of a corporation is to:

The line that connects the maximum that one can consume this year (now) and the maximum one can consume next year

Finance, generally, deals with: I) Money; II) Markets; III) People

The following are examples of foreign-based corporations except: I) British Petroleum; II) General Electric; III) Sony; IV) Volkswagen

As a legal entity a corporation can perform the following functions except: I) borrow money; II) lend money; III) sue and be sued; IV) vote

A firm's investment decision is also called the:

The following are important functions of financial markets: I) Source of financing; II) Provide liquidity; III) Reduce risk; IV) Source of information

The purchase of real assets is also referred to as the: