1.1 The Role of The Financial Manager LEARNING OBJECTIVE 1 Identify the key financial decisions facing the financial manager of any business firm. The financial manager is responsible for making decisions that are in the best interests of the firm’s owners‚ whether the firm is a start-up business with a single owner or a billion-dollar corporation owned by thousands of stockholders. The decisions made by the financial manager or owner should be one and the same. In most situations this means
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Question 1 (1 mark) The methods that a firm can use to evaluate a potential investment: 1) ‘Discounting’ Methods: Net Present Value (NPV): the present value of the future after-tax cash flow minus the investment outlay made initially. The decision rule for the NPV as follows: invest if NPV> 0‚ do not invest if NPV< 0 Internal Rate of Return (IRR): calculates the interest rate that equates the present value of the future after-tax cash flows equal that investment outlay;
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Chapter 01 Introduction to Corporate Finance Multiple Choice Questions 1. The person generally directly responsible for overseeing the tax management‚ cost accounting‚ financial accounting‚ and information system functions is the: A. treasurer. B. director. C. controller. D. chairman of the board. E. chief executive officer. 2. The person generally directly responsible for overseeing the cash and credit functions‚ financial planning‚ and capital expenditures is the: A. treasurer. B. director
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CONCEPT QUESTIONS - CHAPTER 1 1.1 ( What are the three basic questions of corporate finance? a. Investment decision (capital budgeting): What long-term investment strategy should a firm adopt? b. Financing decision (capital structure): How much cash must be raised for the required investments? c. Short-term finance decision (working capital): How much short-term cash flow does company need to pay its bills. ( Describe capital structure. Capital structure
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1. How much of our global energy supply do nuclear power‚ biomass energy‚ and hydroelectric power contribute? How much of our global electricity do these three conventional energy alternatives generate? Biomass provides 10.8% of global primary energy use‚ nuclear power provides 6.5%‚ and hydropower provides 2.2% of global primary energy use. Nuclear power generates 15.8% of the world’s electricity‚ and hydropower generates 15.9%. 2. Describe how nuclear fission works. How do nuclear plant engineers
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understanding of Finance function of a corporation and build capacity to apply theory in real world situations. The course will present the ‘Big Picture’ of Corporate Finance so that students understand how things fit together. After successfully completing the course‚ students should be able to take optimal decisions in a corporate setting‚ when working as professionals in the field. COURSE OUTLINE Introduction to Corporate Finance: Financial Management; Corporate Finance; Corporate Finance vs. Financial
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Chapter 1 E1-4. The Role and Environment of Managerial Finance 11 Agency Costs Answer: Agency costs are the costs borne by stockholders to maintain a governance structure that ensures against dishonest acts of management‚ and gives managers the financial incentive to maximize share price. One example of agency costs is stock options‚ which are used to provide an incentive for managers to work diligently for the benefit of the firm. Tips are similar to stock options in that they
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To what extent does a mature and cyclical product market drive corporate restructuring? Use an extended example to discuss whether restructuring transforms market and financial performance. An organization which is operating in a mature market means that the product does not have the scope to grow anymore. The product has reached its peak‚ with no prospects to increase‚ as the product is has become most popular in the market and no one else will be willing to buy it. A cyclical market is one which
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CORPORATE FINANCE Formative Assessment Some reading: Adams‚ R. B.‚ Hermalin‚ B. E.‚ and Weisbach M. S. (2010) The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey‚ Journal of Economic Literature‚ Vol 48‚ No.1‚ pp. 58–107. Aggarwal‚ R. et al (2009) Differences in governance practices between US and foreign firms: measurement‚ causes and consequences‚ Review of Financial Studies‚ Vol. Bhagat‚ S.‚ and Bolton B. (2008) Corporate Governance and Firm
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Lab 20 Exercises Name ________________________ Date ________________ 1. By default‚ email addressed to system goes to root. How would you also save a copy in /var/logs/systemmail? 2. How would Max store a copy of his email in ~/mbox and send a copy to max@bravo.com? 3. If your firewall allowed only the machine with the IP address 192.168.1.1 to send email outside the network‚ how would you instruct your local copy of sendmail to use this server as a relay? 4. What does dnl stand for
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