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CFI CBCA Core Final Exam Newest 2025/2026 Actual
Exam Complete All 200 Questions And Correct
Detailed Answers (Verified Answers) |Already Graded
A+ Latest Exam!!!
Investors buy debt or equity of the Firm with cash:
Financing Decision - how should the firm raise the
cash/capital to pay for the firm's assets?
External finance involves selling a financial claim - why
choose debt or equity?
Debt - a contractual claim entitles investor to receive fixed
interest payments at specified dates
Equity - a residual claim entitles ownership in firm
Who gets "paid" first?
Neither
Debt holders
Equity holders
Depends - Answer-Depends
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Investment Decision - what real assets do we want to
purchase with the cash?
Operating Decision - how should the firm use assets in
each period?
What is the most important relationship between Investing
and Operating decisions?
Cash Outflow vs. Cash Inflow
Capital Budgeting
No relationship
Both Firm Decisions - Answer-Capital Budgeting
4a) Firm reinvests cash in the Firm's Operations
4b) Firm pays out cash to investors
Payout Decision - how should the Firm divide up operating
cash flows into cash distributed to investors and cash
reinvested in the firm's operations and assets
Is this a cash inflow or outflow?
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Cash Outflow
Cash Inflow
Both
Depends - Answer-Depends
Firm Manager Objectives: What is the manager's primary
objective?
Maximize the enterprise value of the Firm
Avoid financial distress and bankruptcy
Maximize Profit
Maximize the equity value of the Firm - Answer-Maximize
the equity value of the Firm
4a) Firm reinvests cash in the Firm's Operations
4b) Firm pays out cash to investors
Payout Decision - how should the Firm divide up operating
cash flows into cash distributed to investors and cash
reinvested in the firm's operations and assets
Is this a cash inflow or outflow?
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Cash Outflow
Cash Outflow or Neither
Cash Inflow
Both - Answer-Cash Outflow or Neither
What are the five key strategic financial decisions that a
firm must make?
Financing, Investing, Operating, Payout, Liquidity
Financing, Capital Budgeting, Payout, Add Liquidity, Draw
Down Liquidity
Financing, Investing, Capital Budgeting, Payout, Liquidity
Capital Structure, Investing, Operating, Payout, Liquidity -
Answer-Financing, Investing, Operating, Payout, Liquidity
CFI CBCA Core Final Exam Newest 2025/2026 Actual
Exam Complete All 200 Questions And Correct
Detailed Answers (Verified Answers) |Already Graded
A+ Latest Exam!!!
Investors buy debt or equity of the Firm with cash:
Financing Decision - how should the firm raise the
cash/capital to pay for the firm's assets?
External finance involves selling a financial claim - why
choose debt or equity?
Debt - a contractual claim entitles investor to receive fixed
interest payments at specified dates
Equity - a residual claim entitles ownership in firm
Who gets "paid" first?
Neither
Debt holders
Equity holders
Depends - Answer-Depends
,2|Page
Investment Decision - what real assets do we want to
purchase with the cash?
Operating Decision - how should the firm use assets in
each period?
What is the most important relationship between Investing
and Operating decisions?
Cash Outflow vs. Cash Inflow
Capital Budgeting
No relationship
Both Firm Decisions - Answer-Capital Budgeting
4a) Firm reinvests cash in the Firm's Operations
4b) Firm pays out cash to investors
Payout Decision - how should the Firm divide up operating
cash flows into cash distributed to investors and cash
reinvested in the firm's operations and assets
Is this a cash inflow or outflow?
,3|Page
Cash Outflow
Cash Inflow
Both
Depends - Answer-Depends
Firm Manager Objectives: What is the manager's primary
objective?
Maximize the enterprise value of the Firm
Avoid financial distress and bankruptcy
Maximize Profit
Maximize the equity value of the Firm - Answer-Maximize
the equity value of the Firm
4a) Firm reinvests cash in the Firm's Operations
4b) Firm pays out cash to investors
Payout Decision - how should the Firm divide up operating
cash flows into cash distributed to investors and cash
reinvested in the firm's operations and assets
Is this a cash inflow or outflow?
, 4|Page
Cash Outflow
Cash Outflow or Neither
Cash Inflow
Both - Answer-Cash Outflow or Neither
What are the five key strategic financial decisions that a
firm must make?
Financing, Investing, Operating, Payout, Liquidity
Financing, Capital Budgeting, Payout, Add Liquidity, Draw
Down Liquidity
Financing, Investing, Capital Budgeting, Payout, Liquidity
Capital Structure, Investing, Operating, Payout, Liquidity -
Answer-Financing, Investing, Operating, Payout, Liquidity
