46

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Université Bordeaux 1 *

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5000

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Finance

Date

Nov 24, 2024

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docx

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1

Uploaded by MasterScorpion2368

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46. What is the primary purpose of a financial covenant in a loan agreement? A) To specify the interest rate on the loan B) To establish the maturity date of the loan C) To set performance metrics that the borrower must meet D) To determine the collateral required for the loan 47. In the context of corporate governance, what is the role of an independent director? A) To represent the interests of the company's management team B) To represent the interests of a specific group of shareholders C) To provide unbiased oversight and guidance to the company D) To act as a spokesperson for the company's executives 48. Which financial metric is used to assess a company's ability to cover its short-term obligations? A) Current ratio B) Debt-to-equity ratio C) Return on assets (ROA) D) Earnings per share (EPS) 49. What is the primary purpose of a company's cash conversion cycle? A) To assess the firm's profitability B) To evaluate the efficiency of working capital management C) To calculate the firm's weighted average cost of capital (WACC) D) To determine the firm's optimal capital structure 50. In a leveraged buyout (LBO), what is the typical role of a private equity firm? A) Providing financing for the acquisition B) Selling the company to another buyer C) Managing the day-to-day operations of the acquired company D) Advising the target company on its strategic initiatives
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