FIN 357 Exam 1 Ch 1 with correct answers 100% 2026

FIN 357 Exam 1 Ch 1 with correct answers 100% 2026 Capital Budgeting Q - Correct Answer Which long-term assets should we invest in? Capital Structure Q? - Correct Answer How should we finance the decision? Net working capital Q: - Correct Answer How should we obtain and manage everyday (current) finance (assets and liabilities)? What is capital budgeting? - Correct Answer the prices of planning and managing a firm's long term investments financial managers tries to find opportunities that are worth more than the acquisition cost What are some common capital budgeting questions? - Correct Answer Should we launch a new product? Should we expand to a new country? Should we build a new manufacturing plant? Install a new computer software? Replace old equipment? How are capital budgeting questions answered? - Correct Answer with a discounted cash flow analysis What is capital structure? - Correct Answer the specific mixture of long-term debt and equity to finance operations can use internal financing (RE) or external ("issue debt" or "issue equity") What are common capital structure questions? - Correct Answer What mixture of debt and equity is best? What are the least expensive source of funds for the firm? What is net working capital? - Correct Answer current assets - current liabilities management of the firm's short term ("working") assets and short term ("working") liabilities What are common net working capital questions? - Correct Answer How much cash and inventory should we keep on hand? Should we sell on credit? How will we obtain short term financing? what kind of business is not pass-through? - Correct Answer corporation what is the corporate structure? - Correct Answer Board of Directors CEO President & COO - VP Sales, VP Mkt, VP HR Sr VP & CFO - VP Act, VP Finance what is the goal of the firm? - Correct Answer maximize stock price what are direct agency costs? - Correct Answer expenditures that benefit management but harm stockholders expenditures to monitor behavior