Which of the following statements is false? a. financial managers make three basic types of decisions: capital budgeting, capital structure, and working capital management. b. capital budgeting is the process of planning and managing a firm's short-term investments. c. the primary goal for corporate managers should be to make good decisions to maximize the market value of the owner's equity. d. agency conflicts, which sometimes arise when ceos are overly motivated to seek job security, can be reduced by adjusting managerial compensation.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?