FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 47

2) If individuals in general increase the percentage of their income that
they save, interest rates are likely to increase
3) If companies have fewer good investment opportunities, interest rates
are likely to increase
4) Interest rates on all debt securities tend to rise during recessions
because recessions increase the possibility of bankruptcy, hence the
riskiness of all debt securities
5) Interest rates on long-term bonds are more volatile than rates on
short-term debt securities like T-bills
Question 15
The primary operating goal of a publicly-owned firm interested in
serving its stockholders should be to ____
1) maximize its expected total corporate income
2) maximize its expected EPS
3) minimize the chances of losses
4) maximize the stock price per share over the long run, which is the
stock's intrinsic value
5) maximize the stock price on a specific target date
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