Ch. 1: Corporate Finance & the Financial Manager

Financial Manager Roles 1. Investment decisions2. Financial decisions3. Manage short-term cash needsGoal: a. max profit b. min costs c. max market share d. max current value of company stock Board of Directors Group of people elected by shareholders who have the ultimate decision-making authority in the corporation. Agency Problem When …

FinanceChapter1

1) At its most basic level, the function of financial intermediaries is to ________.A) track and report interest ratesB) move money from lenders to borrowers and back againC) report all financial transactions to the federal governmentD) effect a transfer of wealth in society B 2) Which of the following is …

APUSH The American Pageant Chapter 32 vocab

(Warren) Harding President of the United States from 1921 to 1923. This Republican man, though good-natured himself, surrounded himself with a few shady characters who tainted his presidency. Believed in a quasi-laissez-faire economic policy. Died of illness in 1923. Adkins v Children’s Hospital (1923) In this court case, the Supreme …

Finance Chapter 1

Which of the following are cash flows from a corporation into the financial markets? 1.repayment of long-term debt2.payment of loan interest3.payment of quarterly dividend Which of the following should a financial manager consider when analyzing a capital budgeting project? 1.project start up costs2.timing of all projected cash flows3.dependability of future …

Finance Ch. 4

How is the future value of $500 invested for one year at 6% annual interest computed? FV= $500 x (1+0.06)1 Which of these is the definition of the compounding of interest? Compounding is the process of earning interest both on the original investment and on the interest payments received earlier …

Ch 15 MC

sold in large denominations Each of the following is correct regarding bonds except they are interest must be paid on a periodic basis regardless of earnings From the standpoint of the issuing company a disadvantage of using bonds as a means of long term financing is that $210,000 If a …