1. The primary goal of financial management is:a-Maximize current salesb-Maximize the current value of each common stock.c-Minimize operational costs2. Earnings per share are equal to:a-Net income divided by the total number of shares outstanding.b-Gross income multiplied by the even value of the common shares.c-Operational income divided by the even value of the common shares.3. Financial leverage refers to:a-The amount of debt that is used in the capital structure of a company.b-The ratio of retained earnings and stockholders' equity.c-The ratio of the cost of goods sold to total sales.4. The present value of the future cash flows discounted at the appropriate discount rate is called the:a-Main valueb-Present value.c-Simple Interest Rate.5. The process of finding the present value of a certain future amount is often called:a-increase.b-discount.c-compound.6. _____________ can be interpreted as the equilibrium or breakeven financing rate that leads to a profitable project.a-the recovery period.b-the internal rate of return.c-the net present value.7. The most valuable investment disregarded if an alternative investment is chosen is a:a-Expense value expense.b-Sunk cost or Sunk cost.c-Opportunity cost.8. Variable costs _____________.a-They change based on the number of units produced.b-They change depending on the next unit produced.c-they comprise the sum total of all the expenses of production of the company during a period of time9. The marginal costs ______________.a-(over a period of time) are constant regardless of the number of units produced.b-They change depending on the next unit produced.c-they comprise the total sum of all the production expenses of the company during some period of time.10. Fixed costs ________________.a-(over a period of time) are constant regardless of the number of units produced.b-They change depending on the next unit produced.c-they comprise the total sum of all the production expenses of the company during a period of time.11. The amount of systematic risk present in a particular risky asset, in relation to the systematic risk present in an average risk asset, is called the _________ of the asset in particular:a-Beta coefficientb-Law of a single price.c-Diversifiable risk.12. The weighted average of a company's costs of its capital, preferred shares and after-tax debt is:a-Expected performance by capital gain of the share.b-Expected return for capital gain of the firm.c-Weighted average cost of capital (CPPC).