your student guide as study references for the Final Examination. Week One: Foundations of Finance Objective: Discuss 12 principles of foundational corporate finance. 1. __________ occurs when inaccurate information exists. a. 0 The principle of valuable ideas b. 0 Free-rider problem c. 0 Moral hazard d. 0 Adverse selection Objective: Discuss 12 principles of foundational corporate finance. 2. __________ refers to situations wherein the agent can take unseen actions for personal
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References: 2. Scribd. 2011‚ “ Source of Finance” viewed by 12.11.2011 <http://www.scribd.com/doc/27126810/Sources-of-Finance>. 11. Sharon L. Cohen‚ 2005‚ “Definition of Leasing” viewed on 24 November 2011‚ <http://www.ehow.com/about_4811014_definition-of-leasing.html>
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EXERCISE 6-3 (15-- 20 minutes) (a) (b) (c) (d) (e) 4. 3. 4. 3. 1. (f) (g) (h) (i) (j) 1. 5. 4. 5. 4. (k) 1. (l) 2. (m) 2. EXERCISE 6-8 (35-- 45 minutes) CONSTANTINE CAVAMANLIS INC. Statement of Cash Flows For the Year Ended December 31‚ 2008 Cash flows from operating activities Net income ............................................................. Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense ..........................................
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I need help answering 50 multiple choice Business – Finance Questions. 1. Which of the following is NOT a cash flow that should be included in the analysis of a project? a. Changes in net operating working capital. b. Shipping and installation costs. c. Cannibalization effects. d. Opportunity costs. e. Sunk costs that have been expensed for tax purposes. 2. When evaluating a new project‚ firms should include in the projected cash flows all of the following factors EXCEPT: a. Changes
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Review for Exam 3 Instructions: Please read carefully • • The exam will have 25 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation questions. The calculation questions will be similar to those in the homework and review. However‚ the concept questions will be related to any topic we have covered in the class. The concept questions in the review are only some sample questions. You should NOT study only topics in the review
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Solutions to Chapter 14 Introduction to Corporate Financing 14-1 1. a. Number of Shares = Par value of issued stock/par value per share = $60‚000/$1.00 = 60‚000 shares b. Outstanding shares = Issued shares – Treasury stock = 60‚000 – 2‚000 = 58‚000 shares c. The firm can issue up to a total of 100‚000 shares. Because 60‚000 shares have been issued‚ another 40‚000 shares can be issued without approval from share holders. 2. a. The issue of 10‚000 shares would increase
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Explain what sources of finance are available for small to medium sized companies and explain why they sometimes face difficulties in raising finance 1. Introduction The SME (Small and medium enterprise) sector is one of the crucial important contributor to economic growth in terms of Gross Domestic Product(GDP) and job creation worldwide(IFC‚2010). According to OECD(2006)‚ SMEs had created more than sixty percent of the job opportunities for OECD countries. That situation for developing counties
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All businesses need money to function sufficiently. Where this money comes from is defined as sources of finance. There are two different types of sources of finance: internal (capital from inside the business) and external (capital from outside the business). New businesses starting up need money to spend in long-term assets such as premises and equipment. They also need cash to pay for materials‚ pay wages‚ and to pay the day-today- bills such as water and electricity. In-experienced entrepreneurs often
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state‚ and it has a life and existence that is separate from the lives and existence of its owners and managers. c. Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization. d. Limited liability is an advantage of the corporate form of organization to its owners (stockholders)‚ but corporations have more trouble raising money in financial markets because of the complexity of this form of organization. e. Although
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Different stages in raising finance 4 1.2 Venture Capital: a light of hope for the SMEs 5 1.3 Leasing and Factoring: special survival skills 7 2 Difficulties for SMEs in raising finance 8 2.1 Biggest trouble: lack of credit records 8 2.2 Capital constraints 9 2.3 Other barriers 10 3 Conclusion 10 Reference 11 Explain what sources of finance are available for small to medium sized companies and explain why they sometimes face difficulties in raising finance Abstract: This article
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