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Corporate Finance Exam For Unit 1-FMGT 2201-CSCC Questions And Answers With Verified Solutions Already Passed!!! $11.99   Add to cart
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Corporate Finance Exam For Unit 1-FMGT 2201-CSCC Questions And Answers With Verified Solutions Already Passed!!!
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Corporate Finance Exam For Unit 1-FMGT 2201-CSCC Questions And Answers With Verified Solutions Already Passed!!!

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  • 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

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  • CSCC
  • CSCC

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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)

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