1. "Shareholder wealth" in a firm is represented by:
a) the number of people employed in the firm.
b) the book value of the firm's assets less the book value of its liabilities
c) the amount of salary paid to its employees.
d) the market price per share of the firm's common stock
2. The long-run objective of financial management is to:
a) maximize earnings per share.
b) maximize the value of the firm's common stock.
c) maximize return on investment.d) maximize market share.
3. What are the earnings per share (EPS) for a company that earned Rs. 100,000 last year inafter-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retainedearning at the year end?
a) Rs. 100,000
b) Rs. 6.00
c) Rs. 0.50
d) Rs. 6.50