FINA3313 DSM1

mix of the firm's long-term sources of financing

Capital structure refers to the:

should always engage in ethical behavior

Financial managers ____________ when making decisions because it can have a direct impact on shareholder wealth.

cash flows

Financial managers are more concerned with a firm's ____________ than a firm's earning per share when evaluating a potential acquisition.

marginal benefit is greater than the marginal cost

Financial managers should undertake investment opportunities when the _____________.

20.7%

If a firm pays $230200 in taxes and $1,110,000 in income that firm's average tax rate is _____________.

agents

If the managers of a company are not the owners of the company, they are considered:

ordinary income

Income that is earned through the sale of a firm's goods and/ or services is known as ____________.

high

One of the basic premises in finances that when the risk of an investment is high, the rate of return required by the investor will be:

working capital mangement

One of the primary tasks of the financial manager is to manage short-term cash needs, which is known as:

an attractive takeover candidate

When a firm has agency problems, the stock price is often depressed, which makes the firm:

reflected in the stock price

When a manger makes a poor decision that is not in the shareholder's best interest it will be:

A dollar today is worth more than a dollar in the future

Which of the following best describes the concept of the time value of money?

Fees of outside auditors

Which of the following is an example of an agency cost

Which projects should the firm invest resources in to increase shareholder wealth?

Which of the following is on of the primary questions addressed by financial managers?

Making financing decisions

Which of the following is the primary functions of the financial manger?

Controller

Which of the the following positions typically reports to the financial officer (CFO)?

unlimited liability

A disadvantage of a partnership is _______________.

controller

A firm's chief accountant that is responsible for all accounting activities is known as the _______________.

corporation

A ______________ is a form of business organization that is separate legal entity from its owners and has limited liability.

Sarbanes-Oxley Act

The US. Congress passed legislation in 2002 that holds corporate mangers personally responsible for the firm's financial disclosures and decisions. This law is known as the _____________.

marginal tax rate

The fraction of the next dollar of income that you will pay in taxes is referred to as the ______________.

foreign exchange mangager

The manager responsible for monitoring and managing the firm's exposure to loss from currency fluctuations is the:

investors buying and selling the stock

The market price of a share of stock is determined by:

maximize shareholder wealth

The primary goal of the financial manager is to:

capital budgeting

The process of evaluating long-term investment opportunities for the firm, and then determining which ones the firm should invest in is known as

finance

The science and art of managing money is known as _____________.

corporate governance

The set of rules, processes and laws that dictate how a firm is controlled, operated and regulated is known as _______________.