100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Corporate Finance Exam For Unit 1-FMGT 2201-CSCC Questions And Answers With Verified Solutions Already Passed!!! $11.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. CSCC
  4.  
  5. CSCC

Exam (elaborations)

Corporate Finance Exam For Unit 1-FMGT 2201-CSCC Questions And Answers With Verified Solutions Already Passed!!!
 0 view  0 purchase
  • Course
  • CSCC
  • Institution
  • CSCC

Corporate Finance Exam For Unit 1-FMGT 2201-CSCC Questions And Answers With Verified Solutions Already Passed!!!

Preview 2 out of 10  pages

Document information

  • October 19, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • real assets
  • financing
  • corporate finance exam for unit 1 fmgt 2201 cscc q
  • know the difference between investing and financin
  • know what a capital budgeting decision is and the

Written for

  • CSCC
  • CSCC

Seller

avatar-seller
classhub

Reviews received

Content preview

Corporate Finance Exam For Unit 1-
FMGT 2201-CSCC Questions And
Answers With Verified Solutions Already
Passed!!!
Know the difference between Investing and Financing Decisions. -
ANSWER✔✔When a firm invests, it requires real assets


Investing decision: what to invest in- purchase of real assets
Financing decision: how to pay for the investment- sale of real assets


Real Assets Are used to produce a firms goods and services. Tangible/intangible


Real Assets - ANSWER✔✔Are used to produce a firms goods and services.


Financing - ANSWER✔✔Issuing shares of stocks to investors. Shareholders
become part owners of company.


Know what a capital budgeting decision is and the goal of capital budgeting. Be
able to distinguish/identify capital budgeting versus financing decisions. -
ANSWER✔✔Capital budgeting decision- investing decision- capex
The decision to invest in tangible/intangible assets to provide a forecast of
revenues and expenditures and construct a model of how businesses might preform
financially


Know what comprises short-term decisions of financial managers -
ANSWER✔✔(investing and financing decisions)

, Corporations - ANSWER✔✔Unlimited life, limited liability, ease of raising capital
-Can be private (not traded on market) or Public (traded on market)


Disadvantages of Corporations - ANSWER✔✔Double Taxation


Sole Proprietor - ANSWER✔✔Not double Taxed.


Disadvantage of Sole Proprietor - ANSWER✔✔Unlimited Liability


Partnerships - ANSWER✔✔Owned by two or more people. Can be limited or not


Disadvantage of Partnerships - ANSWER✔✔Unlimited liability


Know the goals of a corporation - ANSWER✔✔Maximize Shareholder Wealth


Know primary goal of financial management - ANSWER✔✔(maximize
shareholder wealth/value)


Capital Structure - ANSWER✔✔Is a mix of Long-Term Debt and Equity
financing


Cost of Capital - ANSWER✔✔The rate of return a company must earn in order to
meet the demands of its lenders and expectations of its equity holders


is used in evaluating financial decisions and reinvesting excess cash (i.e. want to
reinvest in projects with rates of return higher than cost of capital)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller classhub. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80562 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$11.99
  • (0)
  Add to cart