128 Finance Skills for Managers - D076 Exam Questions & Answers 100% Solved

What area of finance involves deciding which assets to invest in to create wealth in the future? - ANSWER-Investments (Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.) Hannah is the financial manager of a firm. A project that she has recommended has been approved and will cost $5 million. Since the company does not have enough cash on reserve, Hannah must figure out how to raise enough money to start the project. She can choose whether to issue new bonds, new stocks, a mortgage loan, or some combination of those options. What task is Hannah performing in this scenario? - ANSWER-Making a financing decision (Since the project has already been approved, Hannah is trying to find a way to finance the investment and considering its capital structure.) Maria and Mateo are setting financial goals. They decide that they need to save $200 each month to reach their goal of taking their children to visit their grandparents in Spain next summer. What is the objective of setting such a goal? - ANSWER-To maximize individual utility (While everyone has different personal financial goals, the objectives of such goals is to maximize individual utility.)