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Exam (elaborations)

FIN 412 Exam 1 Review Exam Questions And Correct Detailed Answers.

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What does Corporate Finance address? a. How a firm should manage and fund its short-term assets b. The long-term investments the firm should choose c. How to fund a firm's investments d. All of the Above - correct answer d What is the primary goal of Fi...

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  • September 7, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • FIN.
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RealGrades
FIN 412 Exam 1 Review

What does Corporate Finance address?



a. How a firm should manage and fund its short-term assets

b. The long-term investments the firm should choose

c. How to fund a firm's investments

d. All of the Above - correct answer d



What is the primary goal of Financial Management?



a. To maximize profits

b. To minimize costs

c. To maximize market share

d. To maximize shareholder wealth - correct answer d



In a corporation, who are the "Agents"?



a. Managers

b. Stakeholders

c. Shareholders

d. Bondholders - correct answer a



Which of the following is a potential solution to agency problems?



a. The threat of a takeover

b. Stakeholders that serve as monitors (such as creditors)

, c. Both A & B

d. None of the Above - correct answer c



Which of the following is NOT one of the three major components of the cash flow statement?



a. Operating

b. Accounting

c. Financing

d. Investing - correct answer b



Bondholders generally receive the first claim to a firm's cash flow



a. True

b. False - correct answer a



Liquid assets frequently have Higher rates of return than fixed assets

a. True

b. False - correct answer b



How would Net Working Capital (NWC) be affected if Accounts Receivable increased?



a. Increase in NWC

b. Decrease in NWC

c. No change in NWC - correct answer a



Which of the following is Not a feature of Flexible Policy?



a. Large cash balances

b. Greater inventory

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