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What is the primary goal of corporate finance?

• Maximizing sales revenue

• Minimizing operational costs

• Maximizing the value of the existing owners' equity

• Increasing employee salaries

Which financial statement shows a company’s profitability over a period of time?

• Balance sheet

• Income statement

• Cash flow statement

• Statement of retained earnings

What is the formula for calculating net working capital?

• Total assets - Total liabilities

• Long-term assets - Long-term liabilities

• Current assets - Current liabilities

• Equity - Liabilities

Which factor is most important when deciding a firm’s capital structure?

• The CEO’s preference

• The ratio of debt to equity

• The number of employees

• The company’s advertising budget

What is the main purpose of working capital management?

• Maximizing long-term investments

• Ensuring the company can meet short-term obligations

• Reducing tax liabilities

• Increasing retained earnings

Which of the following is an example of a capital budgeting decision?

• Determining the optimal level of inventory

• Deciding whether to issue dividends

• Choosing whether to invest in a new factory

• Setting the price of a product

The free cash flow (FCF) discounting method is used to:

• Assess the company's ability to repay debt

• Determine the present value of a company based on projected cash flows

• Calculate the return on equity

• Analyze the capital structure of the company

Which of the following is considered a fixed asset?

• Cash

• Accounts receivable

• Machinery

• Inventory

The debt-to-equity ratio is a financial metric used to:

• Assess the profitability of the company

• Measure the company's ability to meet short-term obligations

• Measure the extent to which the company uses debt in its capital structure

• Assess the company's risk level

What is the most common form of dividend payment?

• Stock dividend

• Cash dividend

• Stock repurchase

• Interest payment