FINC 3630 Chapter 1 Exam Guide Test.
FINC 3630 Chapter 1 Exam Guide Test. Corporate finance provides the skills managers need to: - CORRECT ANSWER 1. Identify and select corporate strategies and projects that add value to their firm. 2. Forecast the funding requirements of their company, devise strategy for acquire funds. What are agency problems? - CORRECT ANSWER Occurs when the managers of the firm act on their own self interests and not the interests of shareholders. What is corporate governance? - CORRECT ANSWER The set of rules that control a company's behavior towards its directors, managers, employees, shareholders, etc. What should be the primary objective of managers? - CORRECT ANSWER Maximizing the price of the firms common stock (stockholder wealth). What three aspects of cash flows affect the value of any investment? - CORRECT ANSWER 1. Amount of expected cash flows. 2. Timing of the cash flow stream. 3. Risk of the cash flows.
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- Subido en
- 8 de julio de 2024
- Número de páginas
- 2
- Escrito en
- 2023/2024
- Tipo
- Examen
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- Preguntas y respuestas
