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What is the primary goal of corporate finance? a) To maximize revenue b) To maximize shareholder wealth c) To minimize costs d) To maximize market share

TOPIC: Introduction to Financial Management  1. Which of the following can be accepted as main points to note when it comes to a company's financial objective? O It is generally accepted that the main financial objective of a company should be to maximize (or at least increase) shareholder wealth. O There are practical difficulties in selecting a suitable measurement for growth in shareholder wealth. Financial targets such as profit maximization and growth in EPS might be used, but no financial target on its own is ideal. O Financial performance is therefore assessed in a variety of ways: by the actual or expected increase in the share price, growth in profits, growth in EPS, and so on.  2. Which of the following statement/s depicts agency relationships and conflicts?  I. The owners expect the agents to act in the best interests of the owners. Ideally, the 'contract' between the owners and the managers should ensure that the managers always act in the best interests of the…

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In business finance the generally accepted corporate objective is: Group of answer choices maximization of market share. maximization of shareholders’ wealth maximization of capital employed. maximization of profit.

What is the primary goal of financial management in a corporation? a) Maximizing shareholder wealth b) Minimizing operational costs c) Increasing market share d) Maintaining stable employment

1. What are the company motives for declaring dividends or stock repurchase programs? 2. How would you argue for a significant increase in both dividends and repurchases instead of using the available cash to make investments, i.e. M&A? 3. Would the tax treatment of dividend income versus capital gains income affect the managers’ decisions to disburse cash via dividends versus stock repurchases?

Which of the following is the main goal of corporate financial managers? O A. Maximizing sales. B. Maximizing profits. C. Maximizing market share. D. Maximizing the price per share of the common stock.

a) Determine the market value proportions of debt, preference shares and ordinary equity comprising the company’s capital structure. b) Calculate the after-tax costs of capital for each source of finance and  the after-tax weighted average cost of capital for the company. C) Provide recommendation to your client. d) What are the assumptions underlying the use of a dividend growth model for the estimation of a company’s cost of equity?

If the management of a company would like to improve the company's return on equity, what should the management of the company do?

1. Dividend policy and free cash flow Company management, especially in established corporations, will formulate a policy that is often called a distribution policy or a payout policy. This policy specifies what management intends to do with the company’s profits and any free cash flow (FCF) generated by the firm. The objective is to create a distribution policy that increases the value of the firm and maximizes the wealth of the firm’s shareholders.   Which of the following factors affects management’s decisions regarding a firm’s distribution policy? Check all that apply.   -The level of debt and interest payments   -The level of cash distributions   -The form of payment to shareholders   -The stability of payments to shareholders     Management can make any form of distribution to the firm’s shareholders using the company’s free cash flow (FCF). The underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF…

The following are some of the factors that influence the market price of a corporation: I.  Industry prospects where the company operates II. Dividend declaration III. Management competency in terms of operating efficiency of the company IV. Profitability and good liquidity of the business Which of the above are external factors uncontrollable by the management?   II and III   None of the above   II, III, and IV   I and IV

Which of the following theories is supported by the argument that shareholders can transform a company dividend policy into a different policy by means of investors buying and selling on their own account? a. dividend irrelevance theory b. "bird-in-the-hand" theory C. residual distribution model d. tax preference theory

The primary goal of corporate financial management should be to _______________.   Question 18 options:   1)  maximise the number of shareholders   2)  minimise the firm’s cost   3)  maximise the firm’s profit   4)  maximise the share price

47. The ultimate objective of a business is to maximize wealth of shareholders. Along with that it also _________. a. Increases the risk b. Reduces the return c. Increases the tax d. Reduces the risk

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37. Lis/are a way to raise capital by selling ownership or equity: A. Issuing Stock B. Seeking Early-stage capital C. Issuing Bonds D. Developing profits E. Seeking a Bank Loan 38. is/are a way to raise capital through borrowing: A. Issuing Stock B. Seeking Early-stage capital C. Issuing Bonds D. Developing profits E. Mutual Funds 39. If a firm's revenues are greater than costs, then the business would be considered:

What are the key factors a company should consider when determining its optimal capital structure, and how do these considerations impact major corporations such as Amazon, Coca-Cola, and Facebook (Meta) in terms of financial risk, operational flexibility, and long-term growth? How does the balance between debt and equity affect these companies' strategic decisions, market value, and overall cost of capital? What role do external factors like market conditions, interest rates, and tax regulations play in shaping their capital structure, and how do industry-specific dynamics influence their financial strategies? Additionally, how do companies ensure that their capital structure decisions align with shareholder interests, and what are the potential trade-offs they face between maintaining financial stability and pursuing aggressive growth strategies?

Which one of the following statements is TRUE?   a. Creditors have a claim on a firm's earning stream through the dividend payments they receive.   b. One tool of corporate governance is a company's tax avoidance strategy.   c. One tool of corporate governance is stock repurchases.   d. One tool of corporate governance is how the company's charter affects the likelihood of a takeover.   e. One tool of corporate governance is choosing a good investment banker.

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