Explain also Part 2. Fill in the blanksQuestion 4.With financing decision (Raising capital) and distribution decision (Payout policy),is the one of basic corporate finance functions. It is selecting thebest projects in which to invest the firm's resources. Its process consists of three steps, 1.Identifying potential investments. 2. Analysing those investments to identify which projectswill be sufficiently profitable. And 3. Implementing and monitoring the investments selectedin the 2ndstep.Question 5.risk is the inability of governments to service their debt. BankingMNEs mainly concern this risk with other country risks. It is kind of country risk from acreditor's perspective. Credit rating agencies, likes Moody's, evaluate it by evaluating fourdimensions, economic strength; institutional strength; fiscal strength; and susceptibility toevent risk.

With financing decision (Raising capital) and distribution decision (Payout policy), investment…

Answered: With financing decision (Raising…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 4C

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1. Mr. Salim, a Finance Manager, is concentrating on how the finance for his company can be mobilized and where it will be available. Identify the function performed by him by doing this activity? Acquiring Necessary Capital Investment Decision Forecasting Financial Requirements Cash management
Select all that is true about the role of financial managers and the types of financial decisions they make. Select one or more: a. Capital structure describes the mix of short-term liabilities a firm uses to finance its short-term assets. b. The optimal financial management strategy of a financial manager is to reduce the overall risk level of the firm. c. The duties of the financial manager includes determining the capital structure and which projects the firm should undertake. Od. Size and timing of cash flows is unimportant in a capital budgeting decision. e. Capital Budgeting function involves planning and determining the firm's short term investments. Of. Determining the appropriate level of inventory is a working capital management function. ZA do W X L
As part of his duties, if a finance manager of a company is working on the appropriate source of finance and estimating cost of capital with appropriate debt-equity combination of the company for an expansion proposal, which of the following function he is working on? Select one: A. Forecasting Financial Requirement B. Cash Management C. Acquiring Necessary Capital D. Investment Decision
Multiple Choice Questions 1. The following are the factors to be considered in Suitability, except A. Environment B. Capabilities C. Expectations D. Scenarios 2. The ____________ for a firm is the internal rate of return on existing investments, based on real cash flows. A. cash flow return on investment (CFROI) B. Economic Value Added (EVA) C. Total Shareholders Return D. Return on Investment 3. The elements that must be considered in using EVA are as follows, except ___________. A. Reasonableness of earnings B. Appropriate cost of Capital C. Volatility of the market D. None of the above
10.-From the following options, choose the four that correspond to the application of financial management in the long term. A) Preparing financial reports B) Long-term investments C) Manage working capital D) Capital structure E) Support in identifying SWOT F) Budgeting G) Financial strategy (Class excercise)
Which of the following would be part of a financial manager's investment decision? *a. Collecting receivables from customersb. Paying loansc. Allocating funds for permanent current assetsd. Paying dividends to shareholders
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.
Which of the following is a working capital management issue? O A. The choice of which long-term assets to purchase to meet the firm's business goals. O B. The appropriate amount of cash to hold. C. None of the above is a working capital management issue. O D. The proper mix of stocks and bonds to issue for financing assets.
2. Determining the source of finance comes under ____________________function. a. Investment Decisionb. Liquidity Managementc. Acquire necessary capitald. Tax Management
Encircle the correct answer on each question. 1. Using of available resources or funds within the firm, is known as a. Allocation b. institution c. issuance d. depository 2. Other term of Financial Management. a. Treasury c. Business Finance d. Direct Finance b. Capital Market 3. Derived from latin word “finer" , which means to end or to pay. b. sold c. institution d. finance a. reject 4. They are markets for long-term securities. a. direct finance d. money markets 5. They are institutions and systems that facilitates transactions in all types of financial claims. d. capital markets b. capital markets c. personal finance a. public b. financial markets c. private
Which of the statements are true Select one: a. Short term investment decisions are called working capital management. b. All the statements are true c. Modern Approach involves in utilization of funds d. Wealth Maximisation maximises the value of its equity shares
4.What decisions do managers take that is focused on the financial wellbeing of the company and sometimes includes acquisition of assets, financing and raising funds and capital? A. Financial Decision B. Investment Decision C. Capital Budget Decision 5. What are decisions that mangers usually make? A. Investment, Financial, Dividend Decisions B. Investment, Capital, Dividend Decisions C. Investment, Financial, Capital Decisions 6.Which of the following cannot be considered as an example of Investment Decision? A. Investment in Plant and Machinery B. The decision to enter a new market C. Giving dividends

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