Louisiana State University In Shreveport

MHA 705 MODULE 1 QUESTIONS AND CORRECT ANSWERS 2026 LATEST UPDATE

Succession planning - Answer -useful for managerial positions (CEO, COO etc) -prepares single designated successor -proactive approach to ensuring continuity of leadership Career planning - Answer -succession plans for middle managers -focuses on many particular individuals -prepares several candidates for a position Senior organization leaders - Answer Expected to retire over 5 to 10 years Organizations without succession plans - Answer Uneasiness is intens...

bonds, stocks, options, future contracts, risk adjusted present value, expected - Answer Valuation consists of: 1 2 3 4 The basic process for each is the same, even though the formulas might look different. The theory is finding the ____ of all the ___ future cash flows. bond, borrower, owner - Answer ___ is a debt contract describing legal promises by a ___ to the ___ of the bond (lender). maturity, coupon rate, discount rate - Answer Things needed to know about b...

Which one of the following is the equity risk that is most related to the daily operations of a firm? - Answer business risk Which one of the following states that a firm's cost of equity capital is directly and proportionally related to the firm's capital structure? - Answer M & M Proposition II Which one of the following is the equity risk related to a firm's capital structure policy? - Answer financial The costs incurred by a business in an effort to avoid ...

The information content effect implies that stock prices will rise when dividends are increased provided that the dividend increase: Select one or more: a. is greater than the average historical dividend increase b. is substantial in both dollar amount and percentage terms c. is combined with a stock repurchase d. causes stockholders to increase their expectations of future cash flows - Answer d. causes stockholders to increase their expectations of future cash flows Financial ex...

A company's current cost of capital is based on: - Answer both the returns currently required by its debtholders and stockholders. All else constant, which one of the following will increase a company's cost of equity if the company computes that cost using the security market line approach? Assume the firm currently pays an annual dividend of $1 a share and has a beta of 1.2. - Answer A reduction in the risk-free rate Assume Russo's has a debt-equity ratio of .4 and u...

risk, present - Answer value of the firm is the ___ adjusted ___ value of all the expected future available to the providers of financing. interest, FCF - Answer Although the financial decision does affect the cash flow through the ____ expense and possibly other cash flows, it does not affect ___ free cash flow - Answer ____ is the money available after operations and taxes that belongs to creditors and owners. debt, equity, capital, WACC - Answer We will always...

Not-for-Profit Firm Goals - Answer Agency Problem - Answer Conflict of interest between principal and agent Goal of Financial Management - Answer maximize the current value per share of the existing stock Market Value - Answer Book Value - Answer Marginal Tax Rate - Answer Average Tax Rate - Answer Capital Budgeting - Answer Process of planning and managing a firms investments in fixed assets Key concerns: Size, timing, a...

What is a bond - Answer A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond Treasury bonds: - Answer bonds issued by the federal government, sometimes referred to as government bonds Corporate bonds: - Answer bonds issued by corporations Municipal bonds: - Answer bonds issued by state and local government Foreign bonds: - Answer bonds issued by foreign government...

NPV - Answer Net present value The balance sheet identity is: - Answer Assets ≡ Liabilities + Stockholder's Equity What is the goal of financial management? - Answer maximize shareholder wealth PV - Answer Present value CF - Answer Cash Flow What major regulations impact public firms? - Answer 1) The Securities Act of 1933 and the Securities Exchange Act of 1934 -------Issuance of Securities (1933) -------Creation of SEC and reporting re...