F100 Exam 1 with complete solutions 2023/2024
F100 Exam 1 with complete solutions 2023/2024 What is the goal of a manager? - ANSWER-Increase economic value of the business How do we measure how much the market values a firm? - ANSWER-market value Formula for market value: (Number of shares outstanding) X (Stock Price/share) Why do stock prices change constantly? - ANSWER--new info about publicly traded companies comes up Ex: quarterly earnings announced, new products developed -market gets impacted by moods Ex: driven by behavioral factors (panic, fear about the company or economy) What are some problems in the market? - ANSWER--asymmetric information -managers can manipulate info to boost company stock price What are some signals of problems in the market? - ANSWER--issue new debt/new equity -changes in capital structure of the company -changes in dividend policy -forecast earnings -stock buybacks -stock splits -senior management selling their shares What are the three big finance questions? - ANSWER-What should we buy? (capital budgeting) How should we pay for it? (capital structure)
Información del documento
- Subido en
- 10 de agosto de 2023
- Número de páginas
- 11
- Escrito en
- 2023/2024
- Tipo
- Examen
- Contiene
- Preguntas y respuestas
