Retained earnings result from（）
A. the sale of additional shares of stock to investors
B. income not paid to shareholders
C. an excess of assets over liabilities
D. market values that exceed book values
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A perpetuity is defined as a sequence of（）
A. equal cash flows occurring at equal intervals of time for a specific number of periods
B. equal cash flows occurring at equal intervals of time forever
C. unequal cash flows occurring at equal intervals of time forever
D. unequal cash flows occurring at equal intervals of time for a specific number of periods
Which of the following assets is likely to be considered the most liquid（）
A. Marketable securities
B. Net fixed assets
C. Accounts payable
D. Inventories
The net present value formula for one period is（）
A. NPV = C0 + [C1/（1 + r）]
B. NPV = PV required investment
C. NPV = C0/C1
D. NPV = C1/C0
Ethical decision making in business（）
A. reduces the firm’s profits
B. requires adherence to implied rules as well as written rules
C. is not in the best interests of shareholders
D. is less important than good capital budgeting decisions
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