the firm has multiple choice of sources of financing

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... C. $1 million source of cash in financing activities D. $1 million use of cash in financing activities E. $1 million use of cash in operating activities. On The Firm’s Balance Sheet, Long-term Debt Went From $1 Million At The End Of 2008 To $2 Million At The End Of 2009. B. A way to analyze whether debt or lease financing would be preferable is to: the book value of the firm. 34. The firm's cost of capital is 6% if it borrows $10 million, 10% if it borrows $20 million, and 15% if it borrows $30 million. Question: T-16 Multiple Choice 16. Financing Decision. Any person or entity that has voting rights based on stock ownership of a corporation. a) Discounted Cash flow b) Income or earnings - where the firm is valued on some multiple of accounting income or earnings. What is the value of the firm according to MM with corporate taxes? Which of the following is not one of the three fundamental methods of firm valuation? Borrowing from banks, c. Long-term bonds, d. A stakeholder is: A. In calculating the proportional amount of equity financing employed by a firm, we should use: the common stock equity account on the firm's balance sheet. Financial decision is important to make wise decisions about when, where and how should a business acquire fund. Multiple Choice Questions. a. Finance Basics MCQs systematically covers fundamental part of business finance, financial management and corporate finance... Visit the post for more. c) Balance sheet - where the firm is valued in terms of its assets. Compared to firms that provide a good lifestyle for the owner but little in the way of attractive returns, a firm with potential for high growth and large profits has _____ possible sources of financing. A firm is considering three investment projects which we will refer to as A, B, and C. Each project has an initial cost of $10 million. the current market price per share of common stock times the number of shares outstanding. Because a firm tends to profit most when the market estimation of an organization’s share expands and this is not only a sign of development for the firm but also it boosts investor’s wealth. Kimberly uses $500,000 of 12.0 percent debt financing, and the cost of equity to an unlevered firm in the same risk class is 16.0 percent. Introduction to Corporate Finance. MCQ of Corporate Finance 1.11..1. Multiple Cholce Increase In accounts recelvable Increase In depreclation Decrease In accounts payable Increase In common stock Increase In Inventory D. companies, financial institutions, and individuals derive different benefits from owning assets. includes accounts payable. leasing is a renewable source of intermediate-term funds. an example of "low risk -- low (potential) profitability" asset financing. Investment A offers an expected rate of return of 16%, B of 8%, and C of 12%. Any person or entity that owns shares of stock of a corporation. Which one of the following terms is defined as the management of a firm's long-term investments? 4. C. A person who initially started a firm and currently has management control over the cash flows of the firm due to his/her current ownership of company stock. The largest source of long-term financing for U.S. firms for the last 40 years has been: a. Reinvestment of profits, b. 9. Financing a long-lived asset with short-term financing would be. A. working capital management B. financial allocation C. agency cost analysis D. capital budgeting E. capital structure Which one of the following is a source of cash for a tax-exempt firm? an example of "moderate risk -- moderate (potential) profitability" asset financing. 3. the sum of common stock and preferred stock on the balance sheet. d) Market Share 2.22..2. this is a type of financing unaffected by changes in tax law. 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