What are the duties of a treasurer? Of a controller?
What will be an ideal response?
The treasurer generally handles the firm's financial activities, including cash and credit management, making capital
expenditure decisions, raising funds, financial planning, and managing any foreign currency received by the firm. The
controller is responsible for managing the firm's accounting duties, including producing financial statements, cost
accounting, paying taxes, and gathering and monitoring the data necessary to oversee the firm's financial well-being.
In this textbook, we focus on the duties generally associated with the treasurer and on how investment decisions are
made.
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Mathew is one of the top attorneys at his law firm. His brilliance in handling some of the most difficult and high-profile cases has earned him fame far and wide, and he wields considerable influence in the running of the firm
Mathew's high degree of _____ ensures that he has considerable power to influence others. A. internalization B. discretion C. substitutability D. ingratiation E. visibility
Which of the following statements is CORRECT?
a. If the calculated beta underestimates the firm's true investment risk?i.e., if the forward-looking beta that investors think exists exceeds the historical beta?then the CAPM method based on the historical beta will produce an estimate of rs and thus WACC that is too high. b. Beta measures market risk, which is, theoretically, the most relevant risk measure for a publicly-owned firm that seeks to maximize its intrinsic value. This is true even if not all of the firm's stockholders are well diversified. c. An advantage shared by both the DCF and CAPM methods when they are used to estimate the cost of equity is that they are both "objective" as opposed to "subjective," hence little or no judgment is required. d. The specific risk premium used in the CAPM is the same as the risk premium used in the bond-yield-plus-risk-premium approach. e. The discounted cash flow method of estimating the cost of equity cannot be used unless the growth rate, g, is expected to be constant forever.