FIN2601 Assignment 1 (DETAILED ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED
Answers, guidelines, workings and references . Which of the following statements are correct if a company focuses on profits as financial goal? a) Risk is ignored. b) The share price is ignored. c) The size of the inv...
1. Which of the following statements are correct if a company focuses on profits as a
financial goal?
○ Answer: 4. a, b, and c
2. Which one of the following best describes a capital market?
○ Answer: 4. A financial relationship created by institutions and arrangements that allow
suppliers and demanders of long-term funds to make transactions.
3. The Hard Drive, the technology consulting company, given its earnings before interest
and tax (EBIT) is R. The company’s time interest earned (TIE) ratio is 8.0, its tax rate is 35%, and
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