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What is the important question of corporate finance when a finance manager advises the company’s management to accept or reject a long-term investment project?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter1: Introduction To Finance For Entrepreneurs

Section: Chapter Questions

Problem 14DQ

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What is the important question of corporate finance when a finance manager advises the company’s management to accept or reject a long-term investment project?

Subfield of finance that covers finance theory, regulation, and corporate governance. The goal of a company's finance team is to reduce a company's risk through various risk management techniques, different types of financing requirements and investments.

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In corporate finance, the financing and investment decisions are related to questions concerning: how to generate profits and expand operations. how to reduce costs and survive. how to acquire and employ or invest funds. all of the given options.
How does the financial market facilitate corporate finance and investment management needed?
• Having researched derivatives for investment portfolios, is there a need for them as hedging vehicles in corporate finance? Going forward, how might this apply as a future corporate investment manager?
Corporate finance is concerned with (i) what long-term investments the firm should choose, (in) how the firm should raise funds for selected investments, and (ili) how short-term assets should be managed and financed. option 1: True option 2: False
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.
It is often stated that the ultimate goal of the Finance Manager is tomaximize the current value of the stock of shareholders and not simplymaximizing the profit of the firm. Discuss
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Which of the following questions should be considered when developing a corporation’s financial plan? I. How much net working capital will be needed? II. Will additional fixed assets be required? III. Will dividends be paid to shareholders? IV. How much new debt must be obtained?