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
MOS 1023 Final Exam Practice Questions and Answers $11.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. Practice Tests
  4.  
  5. Practice Tests

Exam (elaborations)

MOS 1023 Final Exam Practice Questions and Answers
 1 view  0 purchase
  • Course
  • Practice Tests
  • Institution
  • Practice Tests

MOS 1023 Final Exam Practice Questions and Answers What is finance? - ANSWER-the science or study of the management of funds The goal of the firm - ANSWER-create value for the firm's shareholders How does the firm achieve their main goal? - ANSWER-By maximizing the price of the existing common...

[Show more]

Preview 2 out of 15  pages

Document information

  • November 4, 2024
  • 15
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • mos 1023 final exam practice questions and answers

Written for

  • Practice Tests
  • Practice Tests

Seller

avatar-seller
KaylinHoffman

Content preview

Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024




MOS 1023 Final Exam Practice Questions

and Answers


What is finance? - ANSWER✔✔-the science or study of the management of funds


The goal of the firm - ANSWER✔✔-create value for the firm's shareholders


How does the firm achieve their main goal? - ANSWER✔✔-By maximizing the price of the existing

common stock by making good financial decisions


Contractual claims - ANSWER✔✔-entitled to what their entitled to, if they don't get it they can sue,

Creditors, managers, employees and customers


Residual claims - ANSWER✔✔-Claim is against whatever is left, after paying what people are

contractually owed. This is what shareholders have.


Management serves as a ____ and ____ between conflicting interest groups or stakeholders and

objectives - ANSWER✔✔-arbitrator and moderator


Three basic issues addressed by the study of finance - ANSWER✔✔-capital budgeting decision, capital

structure decision, operating decision


Capital budgeting decision - ANSWER✔✔-What long-term investments should the firm undertake? Ex. do

we open a factory, expand into Europe, create a new product


Capital structure decision - ANSWER✔✔-How should the firm raise money to fund these investments?

Ex. issue more or less stocks, pay dividends, issue bonds, borrow from bank


Copyright ©Stuvia International BV 2010-2024 Page 1/15

, Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024


Operating decision - ANSWER✔✔-How to manage cash flows arising from day-to-day operations? Ex.

what to do with all money, how best to use extra cash for one day


Cycle in the function of financial manager - ANSWER✔✔-1.a) raising funds financial markets -> financial

manager


1.b) Obligations stock, debt, security financial manager -> financial markets


2. Investments financial manager-> operations (plant,equipment, projects)


3. Cash from operational activities operations ->financial manager


4. reinvesting financial manager-> financial manager


5. dividend or interest payment (instead of reinvesting) financial manager ->financial markets


6 principles of finance - ANSWER✔✔-cashflow is what matters, Money has time value, Risk requires

reward, market prices are generally right, conflicts of interest cause agency problem, Ethics and trust in

bussiness


Principle 1: Cash flow is what matters - ANSWER✔✔-Finance only care about the cashflow Why?

Because its pure. They can have profits but still go bankrupt. When businesses grow too fast, their

income statements look good but they go bankrupt. vice versa, no profits but a lot of cash flow.


Principle 2: Money has time value - ANSWER✔✔-A dollar received today is worth more than a dollar

received in the future.


Since we can earn interest on money received today, it is better to receive money sooner rather than

later.


Equation for finding the original value of a bond before the interest - ANSWER✔✔-P = Fn/(1+r)^n



Copyright ©Stuvia International BV 2010-2024 Page 2/15

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 KaylinHoffman. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67096 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
$11.49
  • (0)
  Add to cart