Multiple Choices - Please select the most correct answer: Example:

1. Shareholder wealth in a firm is represented by?

A. The number of people employed in the firm.

B. Market price per share of the companys stock.

C. Book value of the firms assets.

D. Issue price per share of the companys stock price.

2. Financing decision of Emaar properties include?

A. Initial public offer (IPO) of 3,000,000 shares.

B. Purchase of land for Dhs 500,000,000 in Fujairah

C. Purchase of construction materials for Dhs 6,750,000

D. Payment of salaries to employees.

3. Which of the following is NOT a feature of Common Stock?

A. Right to residual income and assets

B. Right to convert to a predetermined number of preferred Stock

C. Right to elect the Board of Directors

D. Right to maintain proportionate share in firm ownership

4. Assume that a company is bankrupt. All the assets are to be sold in order to pay the following claims against the company: bondholders, Dubai Islamic bank, common stockholders and preferred stockholders. Of the claims mentioned, what priority would preferred stockholders have?

A. First

B. Second

C. Third

D. Fourth

5. The following function is NOT performed occasionally by the Finance Manager

A. Stock issue

B. Capital Budgeting

C. Credit management

D. Dividend decision