1) What is the most important ingredient in developing a firm's financial plan?

A) Determining the amount of dividends to pay shareholders

B) Forecast of gross profits

C) Operational costs of production

D) Projecting the rate of interest on proposed new debt

E) Future projection of the firm's sales revenues and expenses.

2) Suppose International Trading Enterprises purchased 25.000 kilograms of Belgian chocolate for a price of 125.000 euros. If the current exchange rate is .7000 euros to the U.S. dollar, what is the purchase price of the chocolate in dollars?

A) $178.571

B) $87.500

C) $17.500

D) $770.000

E) $129.870

3) An optimal capital structure is achieved

A) when a firm's weighted costs are minimized.

B) when a firm's expected EPS are maximized.

C) when a firm's expected profits are maximized.

D) when a firm's expected stock price is maximized.

E) when a firm's break-even point is achieved.