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 ===============================================