introduction to corporate finance questions and answers
What would you do if you had a 250k line of credit with 2% interest? Contents CHAPTER I Introduction to Corporate Finance I. I What Is Corporate Finance? $0.65 B. Cash flows from acquiring and disposing of non-current assets are classified as: a. operating activities b. investing activities c. financing activities d. purchasing activities. Explain financialization, including the social process of it and how a household becomes involved in the financialization process. If you can't find the question you're looking for, submit it to our experts for an answer. Financial Management - MCQs with answers 1. d. Where did t... "It is best for a country never to borrow from foreign lenders." The firm earned $4.2 million last year and will pay out half this amount in dividends. What are the advantages and disadvantages of long-term debt financing? True b. The main competition for finance companies in the consumer loan market comes from what? Jay Lee plans to put $3,680 down on a vehicle costing $28,680 and will finance a vehicle for 48 months. Describe two strategies, and include the advantages and disadvantages of each strategy, in 350 words. In the world of corporate finance, you will be asked questions related to organizations, management, and behavioral abilities. For a geared entity, how would raising equity finance impact on the cost of equity? Explain the following methods of financing a business: a. factoring b. leasing assets, c. using credit cards. c. only affect the i... What are the success and failures of public finance reforms? CHAPTER 1 INTRODUCTION TO CORPORATE FINANCE Answers to Concepts Review and Critical Thinking Questions 1. A British bank, active in the Eurocurrency market, promises competit... What are the strengths and weaknesses of debt and equity financing? What results, if any, can a firm face if they do not adjust the cash flows? This download link will take you to the full document containing close to 100 Financial Accounting past questions and answers. Futuristic coiffures (FC) needs to raise $85,000 to purchase a new machine. What is the primary function of finance companies? (b) Selling off fixed assets for more than the book value. How to put losses and gains in the income statement to the statement of cash flow? Finance companies differ from commercial banks, savings institutions, and credit unions in that they what? How do I finance a startup that has been running at a loss for three years without paying extortionate interest or securing loans against my home? Smart Finance. Creating new financial instruments backed with various types of. Free guides and practice to ace your interview. Which of the following is shown on neither the indirect method statement of cash flows nor direct method statement cash flows? What are the best free (or cost effective) value investing stock screens, preferably ones that offer a free trial? Right-hand side: how can the firm raise cash for required capital expenditures? Other things equal, firms... 1. The amount(s) that should be reported in the oper... A car dealer will sell you the $16,450 car of your dreams for $3,220 down and payments of $339.95 per month for 48 months. a. c. capital budgeting. The cost of the equipment overhaul is $3.8 million, plus $200,000 in installation costs. In order to raise the funds to... Financing decisions differ from investment decisions for which of the following reasons? They are representative of the types of questions that might be asked of candidates sitting for Exam IFM. Which of the following is not an example of risk aversion? M Chapter 7. The trade-off model of capital structure provides several insights to financial managers concerning optimal capital structure. How do I learn about financial market making? C. own an asset without paying for it. Taylor United is considering overhauling its equipment to meet increased demand for its product. Is this bad news? You may also be asked about your technical ability . Describe and provide examples, if possible. Is Illinois Institute of Technology master of mathematical finance a good program? How can I leverage a background in finance to the startup world? Two methods do this by: A. moving collections and deposits closer together in concentration banks; and moving surplus funds... Identify and discuss three cash flow analysis techniques. True or false? (I m a PhD in mathematics and I m trying to build my resume for a quant job, I ve been told these kind of project... What is the Scope of MBA in banking and finance? The pro forma balance sheet shows that R&E Supplies will need external funding from the bank of $1.4 million. 2. Interest is to be paid semiannually on June 30 and December 31. Do you think the PAMM Solution provided by the Forex brokerage firms is worth investing? Corporate Finance. False. Explain the importance to adjust all cash flows to a common date. How the 3 statements link together and how to walk through questions where one or multiple items change. What is the difference between liquidity and liquidation? c) A bonus issue of ordinary shares. b. only affect the initial cash flows of a project. What is an example of indirect financing? How should I prepare myself to work on the financial market? The company, Boston Turkey Inc., has been in existence for only two years, and its stock is currently trading at â¦ Now that TCS shares are ex-bonus, and the share value has halved, is it a good buy for a long-term investment? Adjusting entries are required: a. every time financial statements are prepared. Evaluate management decisions. For the independent transaction below, indicate which of the revenue/support or expense classifications apply by choosing one or more of the letters from the listed items. Which is better, SBA loan, small business credit line or crowdfunding? Why? What information can a user of financial statements obtain from the statement of cash flows? Explain why the timing and quantity of cash flows are important in capital investment decisions. How can one get a job in a private equity firm? a. The Big IS Development Questions. Before heading into your finance interview, be sure you can handle these frequently asked ... Donât extend beyond your comfort zone when answering questions. Right-hand side: how can the firm raise cash for required capital expenditures? What are the most common sources of equity funding and debt financing? Which of the following is not a financial publication that can provide information about financial services and economic conditions? Does Carl Icahn use value investing and activist investing as his main investing strategy? b) Angel investors. Which instrument is much stronger, debenture or corporate fixed deposits? This is what referred to as: a. diversification. The purposes of the statement of cash flows are to a. evaluate management decisions. Large financial gap between sales and receivables growth b. According to Dundar Mifflin financial analyst, the company can only afford a maximum yearl... On 1 May 2016, Noah issues 9%, 20-year debentures with a maturity value of $200,000. For example: Customer satisfaction is based on the speed at which customer is able make transactions of the company website. Payments received by a city utility fund would appear on a statement of cash flows for government funds. What should be the approach for beginner to invest in SIPs? What are the dangers and disadvantages of using a financial model? The faster a firm's growth in sales, the more likely it is that an increasing percentage of financing will be internally generated. Both the internal and external sources of finance are very important means of funding for entrepreneurs. c. quantitative easing. Aswath Damodaran 3 The Objective in Decision Making n In traditional corporate finance, the objective in decision making is to maximize the value of the firm . If debt financing is used, which of the following is correct? What party acts on behalf of bondholders to ensure that the issuing facility is not only complying with the covenants of the bond but is also making timely principal and interest payments to the bo... Bubba Ho Tep Company reported net income of $300 million for the most recent fiscal year. Is Finance the love child of Mathematics and Economics? Why? What are some good resources to learn about Micro-finance? 2. c. predict future cash flows. Assume that the monthly cost to finance $1,000 is $6.00. What is a source of finance company funds to support operations? The value of a bond at any given time is the sum of: a. the future interest payments and the par value. A. (a) An increase in the Average Collection Period from 15 days to 30 days. Changes in the net working capital requirements: a. can affect the cash flows of a project every year of the project's life. Which of the following is a characteristic of debentures? What does it mean to adopt a maturity matching approach to financing assets, including current assets? Tehcnial finance interview questions and answers. In a Statement of Cash Flows, what is included in the investing section? The statement of cash flows should NOT be used to evaluate an entity's ability to: a. pay dividends b. earn net income c. meet obligations d. generate future cash flows. What are the uses of a cash flow statement? Why is the discount on the issue of debentures said to be deferred revenue expenditure? What is a better undergraduate major (math vs. finance) for an aspiring investment analyst/portfolio manager in an asset/wealth management? © copyright 2003-2020 Study.com. 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Which of the following insights is false? Agency costs 2. A. The sale of receivables by a business: a. can be a quick way to generate cash for operating needs. Why do people finance cars at dealerships instead of credit unions? How would a decrease in inventories affect free cash flow? 3... Forms of funding include: 1) spontaneous. An analyst forecasts that Goodwin is likely to pay its first dividend three years from. CHAPTER 1 INTRODUCTION TO CORPORATE FINANCE Answers to Concepts Review and Critical Thinking Questions 1. They were recompiled so as to help the reader remember, clarify, study in depth and â why not? Access answers to thousands of finance questions with simple, understandable explanations. Financing a company entirely with stockholders' equity is a desirable move from the viewpoint of the stockholder. â capital structure. Describe the four general areas, included in the study of finance. How is the experience? Discuss some factors that health services managers must consider when setting a firm's target capital structure. Review questions and answers, chapter 14-16 Corporate Finance Acct1112Acct2112 - Suggested Solutions To Self - Study Questions - Chp 1 - 12 CFP MCQ Practice Question and Answers Corporate finance solutions manual Sample/practice exam 2019, questions and answers Corporate Finance CH 4 Advantages of Proprietorships and Partnerships Disadvantages 1. (a) government grants (b) business angels (c) friends and family (d) banks (e) venture capital. define the following terms: a. Explain the difference between cost of equity and cost of capital? He has projected a need for R350,000. a) Compare and contrast two types of leases and describe the advantages and disadvantages of each. B. defer payment of interest. Find textbook solutions, Guided textbook solutions created by Chegg experts, Learn from step-by-step solutions for over 34,000 ISBNs in Math, Science, Engineering, Business and more, Answers in a pinch from experts and subject enthusiasts all semester long. A satisfied customer may lead to increased business. His monthly payments will be $610.32. What are pros and cons of the various sources of capital? b. information costs are less likely to constrain capital spending. Introduction. Which business school would be the place to peruse a PGDM in financial markets? Please email us with your comments on this book. Which of the following statements is correct? Do you keep them as bitcoins or exchange some to Etherum, or any alt. Generally, the company uses the Direct method for preparing the Cash Flow Statement as seen in the annual report of the company. Barriers to entry 3. Multiple Choice Questions. This firm's cost of financing with new preferred stock is: A)... Debentures may not have a term of more than thirty (30) years. Net income was $468,000. You are required to discuss with or... What provides loans directly to consumers and businesses and helps borrowers obtain mortgage loans on real property? All rights reserved. Finance. How does gain on sale of equipment affect the cash flow statement?
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