FIN3403 FINANCIAL MANAGEMENT (FIN3403)

Chapter 8: Stock Valuation

exam elaborations with answers

1.1 Finance: An Overview 1) Which of the following statements best represents what finance is about? A) How political, social, and economic forces affect corporations B) Maximizing profits C) The study of how people and businesses make investment decisions and how to finance those decisions D) Reducing risk 2) From a financial point of view, a company that decides to develop new product is making A) a financing decision. B) an investment decision. C) a capital structure decision. D) a ...

The below statements statements best represents what money is about? a) How political, social, and economic forces affect corporations b) Maximizing profits c) The study of how people and businesses make investment decisions and how to money those decisions d) Reducing risk 2) From a monetary point of view, a company that decides to develop new product is making a) a giving decision. B) an investment decision. C) a capital structure decision. D) a cash flow decision. 3) Working capital managemen...

The below statements statements best represents what money is about? a) How political, social, and economic forces affect corporations b) Maximizing profits c) The study of how people and businesses make investment decisions and how to money those decisions d) Reducing risk 2) From a monetary point of view, a company that decides to develop new product is making a) a giving decision. B) an investment decision. C) a capital structure decision. D) a cash flow decision. 3) Working capital managemen...