Monday After 2rd lesson

1. Corporate finance does not discuss which of the following?

• Agency problem

• Financing decisions

• Moral hazard

• All of them are correct

2. Which of the following activities is an investment decision of an enterprise?

• Buy a new fixed asset

• Issuance of  bonds

• Issuance of common stocks

• All of them are correct

3. Which of the following activities is a financing decision of a firm?

• Expand a factory

• Get a long –term debt to finance factory expansion

• Accounts receivable management

• Inventory management

4. Which of the following is an objective of corporate financial management?

• Profit Maximization

• Risk minimization

• Maximize the value of the firm's stock

• All of them are objectives of corporate financial management

5. Which of the following costs can be used as a tax shield?

• Administrative Expenses

• Tax costs

• Interest for the outstanding debt

• All of them can use as tax shield

6. Which of the following is not affected by capital structure?

• ROI

• ROA

• ROE

7. Which of the following formulas is correct?

• EBT= Sale – Operating costs (except depreciation and amortizations)

• EBIT= Sale – Operating costs (include depreciation and amortizations)

• EBIT = Sale – Operating costs (except depreciation and amortizations)–Interest costs

• EBIT = Sale – Operating costs (include depreciation and amortizations)–Interest costs

Who is most interested in EAT?

•  Shareholders

• Creditors

• Government

• All of them are correct

9. What factors affect corporate finance?

• The financial intermediaries

• The provisions of the state

• The business areas

• All of them are correct

10. Which of the following measures the net income that a firm generates per 100 VND of total equity?

• ROI

• ROA

• ROE