Corporate Finance Bundled Exam Questions and CORRECT Answers

Capital budgeting - the process of making and managing expenditures on long-lived assets. Capital structure - the proportions of the firm's financing from current and long-term debt and equity. General partnership - all partners agree to provide some fraction of the work and cash and to shar...

annuity due - An annuity for which cash flows occur at the beginning of the period. perpetuity - An annuity in which the cash flows continue forever. consol - A type of perpetuity. stated interest rate - The interest rate expressed in terms of the interest payment made each period. Also known a...

Equity Multiplier 权益乘数，又叫普通杠杆率 - Total Assets/Total Equity 通过向普通股股东融资所获得的资产与全部资产的比例 Total Asset Turnover - Sales/Total Assets profit margin - Net Income/Sales ROE - Net Income/Total Equity Market Capitalization - share pri...

capex decisions - capital expenditure decision:decisions to invest in tangible/intangible assets capex - Capital Expenditure-land,property, equip, long term real assets free cash flow - Cash available once the firm has covered it's capital expenditures financing decisions - concerned with the ...

coupon - The stated interest payment made on a bond face value - The principal amount of a bond that is repaid at the end of the term. Also called par value. coupon rate - The annual coupon divided by the face value of a bond. (coupon rate = coupon/faсe value) maturity - The specified date...

Erosion - a reduction in the sales of a current product whenever a new product is introduced Opportunity Cost - the most valuable alternative that is given up if a particular investment is undertaken Sunk Cost - A cost that has already been incurred and that cannot be recouped Forecasting Ris...

Financial break-evenFinancial break even NPV solved=0, OCF* for NPV=0 Q=(FC+OCF*)/ (P-v) v=variable cost per unit General Break-EvenQ=(FC+OCF) /(P-v) Constant Growth Model (infinite)a widely cited dividend valuation approach that assumes that dividends will grow at a constant rate, but a rat...

Valuation principleState that we can use current market prices to determine the value today of the costs and benefits associated with a decision Net present value ruleThe main tool of project evaluation where we weigh the costs and benefits at different points in time and apply this information...

Coupon The stated interest payment made on a bond Face Value or Par value The principal amount of a bond that is repaid at the end of a term. Coupon Rate The annual coupon divided by the face value of a bond. Maturity The specified date on which the principal amount of the bond is paid Yield t...

capex decisionscapital expenditure decision:decisions to invest in tangible/intangible assets capexCapital Expenditure-land,property, equip, long term real assets free cash flowCash available once the firm has covered it's capital expenditures financing decisionsconcerned with the ways in whic...

Corporate Finance PASSED Actual Exam Questions and CORRECT Answers Q. Under the stakeholder theory, corporate governance is most consistent with a system of: internal controls and procedures by which individual companies are managed. defined roles for management and the majority shareowner(s). ...

Corporate Finance UPDATED Actual Exam Questions and CORRECT Answers Financial break-even - CORRECT ANSWER Financial break even NPV solved=0, OCF* for NPV=0 Q=(FC+OCF*)/ (P-v) v=variable cost per unit General Break-Even - CORRECT ANSWER Q=(FC+OCF) /(P-v) Constant Growth Model (infinite) - CO...