MBA 702 M1 Self-Assessment - Han
Shi Questions and Answers.
Not-for-Profit Firm Goals - Answer
Agency Problem - Answer Conflict of interest between principal and agent
Goal of Financial Management - Answer maximize the current value per share of the existing
stock
Market Value - Answer
Book Value - Answer
Marginal Tax Rate - Answer
Average Tax Rate - Answer
Capital Budgeting - Answer Process of planning and managing a firms investments in fixed
assets
Key concerns: Size, timing, and RISK of future cash flows
Long term invest decisions determine the level of fixed assets
Capital Structure - Answer Mix of debt/borrowing and equity/ownership interest used by a
firm
What are least expensive sources of funds?
Is there an optimal mix of debt and equity?
When and where should the firm raise funds?
Financing policy determines the liabilities and question side of the balance sheet
Working Capital - Answer Managing short term assets and liabilities
How much inventory should the firm carry?
What credit policy is best?
Where will we get our short term loans?
Shi Questions and Answers.
Not-for-Profit Firm Goals - Answer
Agency Problem - Answer Conflict of interest between principal and agent
Goal of Financial Management - Answer maximize the current value per share of the existing
stock
Market Value - Answer
Book Value - Answer
Marginal Tax Rate - Answer
Average Tax Rate - Answer
Capital Budgeting - Answer Process of planning and managing a firms investments in fixed
assets
Key concerns: Size, timing, and RISK of future cash flows
Long term invest decisions determine the level of fixed assets
Capital Structure - Answer Mix of debt/borrowing and equity/ownership interest used by a
firm
What are least expensive sources of funds?
Is there an optimal mix of debt and equity?
When and where should the firm raise funds?
Financing policy determines the liabilities and question side of the balance sheet
Working Capital - Answer Managing short term assets and liabilities
How much inventory should the firm carry?
What credit policy is best?
Where will we get our short term loans?
