UKY FIN 300 TEST 1 || A+ GUARANTEED.
Corporate Finance correct answers being inside of a nonfinancial firm looking out with the goal
of maximizing shareholder wealth.
Investments correct answers trying to maximize their own wealth and well-being, their
perspective is from outside the firm looking in.
Financial Intermediaries correct answers outside a nonfinancial firm, but they often have some
inside position.
investors' required return = correct answers the firm's cost of capital
Sole Proprietorships liability correct answers one owner; unlimited personal liability
Partnerships liability correct answers All partners are liable for the firm's debt.
Limited partners cannot run business
Limited Liability Companies (LLC): correct answers A Hybrid of Partnership and Corporation
Limited Liability Companies (LLC) liability correct answers All owners have limited liability
and can run business
The balance sheet offers insight into the correct answers decisions, activities and objectives of
the Financial Manager
Balance Sheet Reveals correct answers long-term investments, raise funds, current assets
Capital Structure correct answers Long-term Debt vs. equity
Net working capital formula correct answers current assets - current liabilities
The primary goal of a company is to maximize its share price correct answers true
the primary goal of a company is to maximize its share price correct answers true
total assets = correct answers total liabilities + stockholders equity
operating cash flow correct answers ebit +depreciation - taxes
ebit correct answers earnings before taxes
can capital spending be negative? correct answers yes. if you sold more assets than you bought
cash flow to creditors = correct answers interest paid - net new borrowing
Cash Flow to stockholders correct answers = Dividends paid - Net new equity issued
net new equity issued correct answers Stock Sold - Stock Bought
Corporate Finance correct answers being inside of a nonfinancial firm looking out with the goal
of maximizing shareholder wealth.
Investments correct answers trying to maximize their own wealth and well-being, their
perspective is from outside the firm looking in.
Financial Intermediaries correct answers outside a nonfinancial firm, but they often have some
inside position.
investors' required return = correct answers the firm's cost of capital
Sole Proprietorships liability correct answers one owner; unlimited personal liability
Partnerships liability correct answers All partners are liable for the firm's debt.
Limited partners cannot run business
Limited Liability Companies (LLC): correct answers A Hybrid of Partnership and Corporation
Limited Liability Companies (LLC) liability correct answers All owners have limited liability
and can run business
The balance sheet offers insight into the correct answers decisions, activities and objectives of
the Financial Manager
Balance Sheet Reveals correct answers long-term investments, raise funds, current assets
Capital Structure correct answers Long-term Debt vs. equity
Net working capital formula correct answers current assets - current liabilities
The primary goal of a company is to maximize its share price correct answers true
the primary goal of a company is to maximize its share price correct answers true
total assets = correct answers total liabilities + stockholders equity
operating cash flow correct answers ebit +depreciation - taxes
ebit correct answers earnings before taxes
can capital spending be negative? correct answers yes. if you sold more assets than you bought
cash flow to creditors = correct answers interest paid - net new borrowing
Cash Flow to stockholders correct answers = Dividends paid - Net new equity issued
net new equity issued correct answers Stock Sold - Stock Bought
