PLEASE ANSWER ALL THE QUESTIONS . DO NOT POST INCOMPLETE SOLUTIONS. I WANT COMPLETE EXPLANATIONS FOR EACH ANSWER. PLEASE EXPLAIN IN A BETTER WAY.

DO NOT CLAIM IF YOU CANT ANSWER ALL 5 QUESTIONS

1) The estimated value of a firm is the current (present) value of expected (future) cash flows based on the return demanded by investors, which is dependent on the risk associated with the firm. Which of the following is NOT a firm factor/consideration that impacts net cash flows?

	a. Normal operations revenue and expense
	b. Dividends

	c. Investment (capital budget) policy
	d. Financing (capital structure) policy

e. Investor's risk profile

2) The estimated value of a firm equals the current (present) value of expected (future) cash flows based on the return demanded by investors, which is dependent on the risk associated with the firm. Which of the following is NOT an investor/investmentfactor/consideration that impacts net cash flows?

	a. Dividends
	b. Income/savings

	c. Interest rates
	d. Age/lifestyle

e. Risk attitude/preference

3) The Chief Financial Officer's (CFO) key subordinates are the Treasurer and the Controller. Which of the following is a primary responsibility of the Controller?

	a. Direct responsibility for managing the firm's cash and marketable securities
	b. Planning how the firm is financed and when funds are raised

	c. Managing the firm's risks
	d. Oversight of the activities of the accounting and tax departments

	e. Overseeing the corporate pension plan.
	f. Supervising the credit manager, the inventory manager, and director of capital budgeting who analyzes decisions related to investment in fixed assets.

4) An agency relationship exists when one or more individuals, who are called principals, hire another person, the agent, to perform a service and delegate decision-making authority to that agent.

	True
	False

5) The "agency problem" exists when executives negotiate terms with third-party vendors.

	True
	False