Link to the Cartoon from ReadyToManage

Ready for Monday’s financial quiz?

This week’s topic is financial management. I have added more questions. Enjoy the quiz on IG!

The long term objective of financial management is...

1. To maximize earnings per share

2. To maximize market share

3. To maximize return on investment

4. To maximize the value of the firm's common stock

The decision function of financial management can be broken down into

1. Financing and investment

2. Investment, financing and asset management

3. Financing and dividend

4. Capital budgeting, cash management and credit management

The market price of a share of common stock is determined by...

1. The board of directors of the firm

2. Individuals buying and selling the stock

3. The stock exchange on which the stock is listed

4. The president of the company

What is the "shareholder wealth" of a firm?

1. The number of employed people at the firm

2. The book value of the firm's assets less the book value of its liabilities

3. The market price per share of the firm's common stock

4. None of the above

Since several requested the question with numbers. Here you go: a company earned $ 100.000 in after tax profits, has 200.000 common shares outstanding and $1.2 million in retained earnings.What were the earnings per share?

1. $0.50

2. $6.00

3. $6.50

4. $100.000

Good luck!