1. What is the primary goal of financial management?
a. To maximize the value of the company’s common shares
b. To maximize the company’s cash flow
c. To minimize the risk of the company
d. To increase the company’s earnings
e. To maximize the company’s sales
2. An increase in leverage does which of the following?
a. increases risk and returns
b. decreases risk and increases returns
c. decreases risk and returns
d. increases risk and decrease returns