corporate finance

The process of planning and managing a firm’s long-term investments is called: Capital budgeting.
The mixture of debt and equity used by a firm to finance operations is called: Capital structure.
The management of a firm’s short-term assets and liabilities is called: Working capital management.
4. The primary goal of financial management is to: Maximise the current value per share of the existing stock.
A conflict of interest between the stockholders and management of a firm is called: The agency problem
A stakeholder is: Any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of the firm.
Agency costs refer to: The costs of any conflicts of interest between stockholders and management.
The original sale of securities by governments and corporations to the general public occurs in the: Primary market.
When one shareholder sells stock directly to another the transaction is said to occur in the: Secondary market.
Which one of the following is a capital budgeting decision? deciding whether or not to open a new store
Financial markets are composed of: Capital markets and money markets.
A firm has a total debt ratio of .47. This means that that firm has 47 cents in debt for every: £.53 in equity.
A total asset turnover measure of 1.03 means that a firm has £1.03 in: Sales for every £1 in total assets.
Jessica’s Boutique has cash of £50, accounts receivable of £60, accounts payable of £200, and inventory of £150. What is the value of the quick ratio? .55
. A firm has a debt-equity ratio of .40. What is the total debt ratio? 29
. Lee Sun’s has sales of £3,000, total assets of £2,500, and a profit margin of 5%. The firm has a total debt ratio of 40%. What is the return on equity? 10%

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