ESSENTIALS OF CORPORATE FINANCE ROSS
COMPREHENSIVE STUDY QUESTIONS AND
ANSWERS
◉ Corporate Finance.
Answer: broadest area, inportant is all types, includes making
decisions regarding plant expansions to choosing what type of
securities to issue when finance an expansion
◉ Investments.
Answer: financial assets -stocks and bonds; study of investments
two branches; Portfolio management--money is manages for
individuals; Security Analysis--research of individual assets i.e. stock
in particular company,determines whether priced correctly
◉ Financial Institutions.
Answer: Business that deal in financial matters; banks and insurance
companies
◉ International Finance.
Answer: investments made across non -us companies and oversea
operations which involves exchange wish and political risk
,◉ Why need to understand finance.
Answer: marketers work w/ budgets, need the greatest payoff from
marketing expenditures and programs -- analyzing cost and benefits
of all types is one of the most vital aspects of finance
◉ Why need to understand finance.
Answer: accountants finance is required reading. accountants are
req to make financial decisions as well as perform traditional
accounting duties
◉ why need to understand finance.
Answer: Important area in management is strategy.. management
strategist must have clear understanding of the financial
implications of business plans
◉ why need to understand finance.
Answer: not just competent in one area, must be familiar with other
business disciplines specially finance
◉ Capital budgeting.
Answer: deciding whether to expand a manufacturing plant
◉ Captital Structure.
Answer:
, ◉ Four Basic Areas of Finance.
Answer: Traditionally, financial topics are grouped into four main
areas:
Corporate finance (main subject of our course);
Investments;
Financial institutions;
International finance.
◉ Corporate finance is the area of finance dealing with sources of
funding and the capital structure of corporations, the actions that
managers take to increase a firm's value to shareholders, plus tools
and analysis used to allocate financial resources..
Answer: The term "corporate finance" seems to imply that the topics
studied are only related to corporations, but in reality, those topics
are much broader. That is why "business finance" would be a little
more descriptive term, as a lot of subjects discussed later in the
course are basic financial ideas and principles that apply across
various areas of finance and beyond
◉ Investments area of finance deals with financial assets, such as
stocks and bonds..
Answer: Three fields of specialization in the area of investments are:
Financial advising and asset trading that is performed by
stockbrokers and financial advisors, who help their clients make
COMPREHENSIVE STUDY QUESTIONS AND
ANSWERS
◉ Corporate Finance.
Answer: broadest area, inportant is all types, includes making
decisions regarding plant expansions to choosing what type of
securities to issue when finance an expansion
◉ Investments.
Answer: financial assets -stocks and bonds; study of investments
two branches; Portfolio management--money is manages for
individuals; Security Analysis--research of individual assets i.e. stock
in particular company,determines whether priced correctly
◉ Financial Institutions.
Answer: Business that deal in financial matters; banks and insurance
companies
◉ International Finance.
Answer: investments made across non -us companies and oversea
operations which involves exchange wish and political risk
,◉ Why need to understand finance.
Answer: marketers work w/ budgets, need the greatest payoff from
marketing expenditures and programs -- analyzing cost and benefits
of all types is one of the most vital aspects of finance
◉ Why need to understand finance.
Answer: accountants finance is required reading. accountants are
req to make financial decisions as well as perform traditional
accounting duties
◉ why need to understand finance.
Answer: Important area in management is strategy.. management
strategist must have clear understanding of the financial
implications of business plans
◉ why need to understand finance.
Answer: not just competent in one area, must be familiar with other
business disciplines specially finance
◉ Capital budgeting.
Answer: deciding whether to expand a manufacturing plant
◉ Captital Structure.
Answer:
, ◉ Four Basic Areas of Finance.
Answer: Traditionally, financial topics are grouped into four main
areas:
Corporate finance (main subject of our course);
Investments;
Financial institutions;
International finance.
◉ Corporate finance is the area of finance dealing with sources of
funding and the capital structure of corporations, the actions that
managers take to increase a firm's value to shareholders, plus tools
and analysis used to allocate financial resources..
Answer: The term "corporate finance" seems to imply that the topics
studied are only related to corporations, but in reality, those topics
are much broader. That is why "business finance" would be a little
more descriptive term, as a lot of subjects discussed later in the
course are basic financial ideas and principles that apply across
various areas of finance and beyond
◉ Investments area of finance deals with financial assets, such as
stocks and bonds..
Answer: Three fields of specialization in the area of investments are:
Financial advising and asset trading that is performed by
stockbrokers and financial advisors, who help their clients make
