1) The financial management decisions can be classified into four basic kinds, Investment Decisions, Financing Decisions, Liquidity Decisions and Dividend Decisions. True False
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- Determining optimum capital structure is a. An investment decision b. A financing decision c. A dividend decision d. liquidity decisionWhich of the following is TRUE? I. Internal rate of return (IRR) is a major method for determining the cost of equity. II. The cost of capital depends on the source of the funds. Group of answer choices I and II II only Neither I nor II I only13. Both real and financial assets have four principal attributes that are significant factors in the investment decision process. These are: I. liquidity II. capital gain III. risk IV. return or yield V. time pattern of future cash flows VI. price and cash flow volatility A. I, III, IV, V B. I, II, III, IV C. I, III, IV, VI D. II, III, IV, V
- a. which cash flow method presentation is easier to understand: direct or indirect? b. explain the three sections of the indirect method: operating, investing, & financing.Source and deployment of funds concerned with 1)Ratio analysis 2)Risk analysis 3)cash flow analysis 4) profitability analysisNPV measures a. the change in firm value b. the profitability of an investment c. the change in wealth d. the present value of the future net cash flows from the investment e. all of the above
- Working capital management is a financial decision-making process. a. True b. FalseThe most important of the three distinct types of decisions when it comes to value creation. a. financing decision b. investment decision c. dividend decision d. liquidity decisionQuestion 6:- What is the difference between preparing the Operating section of the cash flow statement With the direct method vs. The indirect method? What is horizontal financial statement analysis? How is Operating Margin calculated and what does it measure?
- This involves addressing concerns on where to get capital needed. a. Financing decisions b. Investment decisions c. Dividend decisions d. Liquidity decisionsWhich one of the following is an internal characteristic that can affect the value of an investment? O a. Political events. O b. Taxation policy. Oc Capital structure. O d. Inflation. (Chapter.2) ot dunrTo find NPV, it requires Choices: A.none of the choices B.discount rate and estimated cash flows C.investment amount plus discount rate D.discount rate and inflation rate E.estimated cash flow and capital structure