Chap 01 10ce - Introduction to Corporate Finance
1. Award: 10.00 points Complete Answers Included ✅
The balance sheet is made up of what five key components:
fixed assets, current liabilities, long term debt, tangible current assets and shareholders'
equity.
intangible fixed assets, current liabilities, long term debt, net income and current assets.
current assets, fixed assets, long term debt, shareholders equity and retained earnings.
fixed assets, long term debt, current assets, current liabilities and shareholders' equity.
References
Multiple Choice Difficulty: Medium
2. Award: 10.00 points
In terms of the balance sheet model of the firm, the value of the firm in financial markets is equal to:
cash inflow minus cash outflow.
tangible fixed assets plus intangible fixed assets.
the value of the debt minus the value of the equity.
sales minus costs.
the value of the debt plus the value of the equity.
the value of the debt plus the value of the equity.
References
Multiple Choice Difficulty: Easy
,3. Award: 10.00 points
Inventory is a component of:
current assets.
current liabilities.
equity.
fixed assets.
References
Multiple Choice Difficulty: Easy
4. Award: 10.00 points
Using the balance sheet model of the firm, finance may be thought of as analysis of three primary
subject areas. Which of the following groups correctly lists these three areas?
Capital budgeting, capital structure, net working capital.
Capital budgeting, capital structure, security marketing.
Capital budgeting, net working capital, tax analysis.
Capital budgeting, tax analysis, security marketing.
Net working capital, tax analysis, security marketing.
References
Multiple Choice Difficulty: Easy
,5. Award: 10.00 points
Which of the following is not considered one of the basic questions of corporate finance decisions?
How can the firm raise cash for required capital expenditures?
How should the short-term operating cash flows be managed?
What amount of long term debt and equity should the company issue to the market in the
following years?
What long-lived assets should the firm invest?
How much inventory should the firm hold?
How much inventory should the firm hold?
References
Multiple Choice Difficulty: Easy
6. Award: 10.00 points
The need to manage net working capital arises because:
financial management is naturally broken into those areas.
shareholders want to ensure they receive dividend payments.
the sum of current assets and current liabilities usually is zero.
the capital structure pie is limited in size.
there is a mismatch between the timing of cash inflows and cash outflows.
References
Multiple Choice Difficulty: Easy
, 7. Award: 10.00 points
Which one of these is a cash outflow from a corporation?
dividend payment
sale of common stock
profit retained by the firm
issuance of debt
sale of an asset
References
Multiple Choice Difficulty: Easy
8. Award: 10.00 points
Which one of these is a cash inflow to a corporation?
Collection of account receivables
Purchase of a long-term asset
Reduction of accounts payables
Repurchase of shares
References
Multiple Choice Difficulty: Easy
1. Award: 10.00 points Complete Answers Included ✅
The balance sheet is made up of what five key components:
fixed assets, current liabilities, long term debt, tangible current assets and shareholders'
equity.
intangible fixed assets, current liabilities, long term debt, net income and current assets.
current assets, fixed assets, long term debt, shareholders equity and retained earnings.
fixed assets, long term debt, current assets, current liabilities and shareholders' equity.
References
Multiple Choice Difficulty: Medium
2. Award: 10.00 points
In terms of the balance sheet model of the firm, the value of the firm in financial markets is equal to:
cash inflow minus cash outflow.
tangible fixed assets plus intangible fixed assets.
the value of the debt minus the value of the equity.
sales minus costs.
the value of the debt plus the value of the equity.
the value of the debt plus the value of the equity.
References
Multiple Choice Difficulty: Easy
,3. Award: 10.00 points
Inventory is a component of:
current assets.
current liabilities.
equity.
fixed assets.
References
Multiple Choice Difficulty: Easy
4. Award: 10.00 points
Using the balance sheet model of the firm, finance may be thought of as analysis of three primary
subject areas. Which of the following groups correctly lists these three areas?
Capital budgeting, capital structure, net working capital.
Capital budgeting, capital structure, security marketing.
Capital budgeting, net working capital, tax analysis.
Capital budgeting, tax analysis, security marketing.
Net working capital, tax analysis, security marketing.
References
Multiple Choice Difficulty: Easy
,5. Award: 10.00 points
Which of the following is not considered one of the basic questions of corporate finance decisions?
How can the firm raise cash for required capital expenditures?
How should the short-term operating cash flows be managed?
What amount of long term debt and equity should the company issue to the market in the
following years?
What long-lived assets should the firm invest?
How much inventory should the firm hold?
How much inventory should the firm hold?
References
Multiple Choice Difficulty: Easy
6. Award: 10.00 points
The need to manage net working capital arises because:
financial management is naturally broken into those areas.
shareholders want to ensure they receive dividend payments.
the sum of current assets and current liabilities usually is zero.
the capital structure pie is limited in size.
there is a mismatch between the timing of cash inflows and cash outflows.
References
Multiple Choice Difficulty: Easy
, 7. Award: 10.00 points
Which one of these is a cash outflow from a corporation?
dividend payment
sale of common stock
profit retained by the firm
issuance of debt
sale of an asset
References
Multiple Choice Difficulty: Easy
8. Award: 10.00 points
Which one of these is a cash inflow to a corporation?
Collection of account receivables
Purchase of a long-term asset
Reduction of accounts payables
Repurchase of shares
References
Multiple Choice Difficulty: Easy
