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QUESTION 20 "For a proposed investment to be deemed acceptable, it must earn at least as much as the company cost of capital project cost of capital inflation rate market risk premium QUESTION 22 What is maximum that can be lost by an individual shareholder when the corporation is bankrupt? the amount of their initial investment. the amount of their share of the profits their proportionate share required to pay the corporation's debts. the amount of their personal wealth. QUESTION 24 Which of the following reflects an improvement in a corporation's asset management efficiency? An increase in the amount of assets per dollar of sales An increase in the inventory turnover rate A decrease in the receivables turnover rate An increase in the average days in inventory QUESTION 25 Which one of these was a contributing factor to the need for many foreign banks to seek aid from their governments as a result of the financial crisis of 2007-2009? Decrease in their exchange rates Interest rate spikes Trade war Investments in U.S. subprime mortgages QUESTION 26 Which of the following is true? Book value is a better measurement than market value The separation of ownership and management is one distinctive feature of corporations. The primary goal of any company should be to maximize current period profits. Diversification decreases the variability of both specific and market risk

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