As part of his duties, if a finance manager of a company is working on the appropriate source of finance and estimating cost of capital with appropriate debt-equity combination of the company for an expansion proposal, which of the following function he is working on? Select one: A. Cash Management O B. Acquiring Necessary Capital O C. Investment Decision O D. Forecasting Financial Requirement

As part of his duties, if a finance manager of a company is working on the appropriate source of finance and estimating cost of capital with appropriate debt-equity combination of the company for an expansion proposal, which of the following function he is working on? Select one: A. Cash Management O B. Acquiring Necessary Capital O C. Investment Decision O D. Forecasting Financial Requirement

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 13MC

See similar textbooks

Similar questions

The cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnover
Suppose a firm makes the following policy changes listed. If a change means that external, nonspontaneous financial requirements (AFN) will increase, indicate this by a (+); indicate a decrease by a (−); and indicate no effect or an indeterminate effect by a (0). Think in terms of the immediate effect on funds requirements.
How do creditors assess risk when lending funds to a company?
As part of his duties, if a finance manager of a company is working on the appropriate source of finance and estimating cost of capital with appropriate debt-equity combination of the company for an expansion proposal, which of the following function he is working on? Select one: A. Forecasting Financial Requirement B. Cash Management C. Acquiring Necessary Capital D. Investment Decision
Select all that is true about the role of financial managers and the types of financial decisions they make. a. Capital Budgeting function involves planning and determining the firm’s short term investments. b. Determining the appropriate level of inventory is a working capital management function. c. The duties of the financial manager includes determining the capital structure and which projects the firm should undertake. d. Capital structure describes the mix of short-term liabilities a firm uses to finance its short-term assets. e. The optimal financial management strategy of a financial manager is to reduce the overall risk level of the firm. f. Size and timing of cash flows is unimportant in a capital budgeting decision.
After deciding the financial requirement, the finance manager should concentrate on ........................................ Select one: A. Mobilizing or Acquiring the Necessary Capital B. Cash Management C. Liquidity Management D. Investment Decision
Select all that is true about the role of financial managers and the types of financial decisions they make. a. The optimal financial management strategy of a financial manager is to reduce the overall risk level of the firm.b. The duties of the financial manager includes determining the capital structure and which projects the firm should undertake.c. Capital structure describes the mix of short-term liabilities a firm uses to finance its short-term assets.d. Capital Budgeting function involves planning and determining the firm’s short term investments.e. Determining the appropriate level of inventory is a working capital management function.f. Size and timing of cash flows is unimportant in a capital budgeting decision.
Which of the following scenario shows the financial manager’s financing function? a. Prioritizing investments based on properly computed capital rationing method. b. Capital budgeting computation and decision with regards to the planned acquisition. c. Assessing and selecting a long-term and short-term financing tools that has a low cost. d. Monitoring trends in operating expenses for the purpose of budget allocation.
Discuss the factors that are likely to influence the desired level of cash of a companyb. Outline the advantages and disadvantages of using short term debt, as opposed to longterm debt, in the financing of working capital c. Why cash flows rather than profits are most desirable in financial management? d. Explain the term “agency relationships” and discuss the conflicts that might exist in therelationship between’i) Shareholder and managersii) Shareholders and creditorsWhat steps may be taken to overcome these conflicts?
Which of the following helps to meet the short-term liquidity position of the concern? a.Investment Decision b.Capital Budgeting c.Cash Management d.Interrelation with Other Departments
What is the acceptable level of a company's indebtedness according to the financial leverage indicator a. The level based on the willingness of banks to provide loans b. Until the debt financing resource are cheaper than equity shareholder fund c. Under condition that the employed debt financing resources are increasing profitability of equity shareholder fund d. The level based on the willingness of shareholders to provide registered capital