This document of FIN 571 Study Guide 571 Final includes answers to the next questions:

1) Which of the following statements is true?

A. A security is a claim issued by a firm that pays owners interest, not dividends

B. A call option analyzes conflicts of interest and behavior in a principal-agent relationship

C. An agent-manager can never make bad decisions

D. The difference between the value of one action and the value of the best alternative is called an opportunity cost

2) Book value, or net book value, refers to

A. the statement of a firm

This document of FIN 571 Study Guide 571 Final includes answers to the next questions:

1) Which of the following statements is true?

A. A security is a claim issued by a firm that pays owners interest, not dividends

B. A call option analyzes conflicts of interest and behavior in a principal-agent relationship

C. An agent-manager can never make bad decisions

D. The difference between the value of one action and the value of the best alternative is called an opportunity cost

2) Book value, or net book value, refers to

A. the statement of a firm