Worksheetsfin 2
Total questions: 10
Worksheet time: 5mins
Deciding the best mix of debt and equity to finance the firm is part of:
A. Working Capital Management
B. Capital Structure
C. Capital Budgeting
D. Investment Management
Managing current assets and current liabilities is the main task of:
A. Capital Budgeting
B. Capital Structure
C. Financial Planning
D. Working Capital Management
The primary goal of a financial manager is to maximize:
A. Current Net Income
B. Market Share
C. Stockholders' Wealth
D. Sales Revenue
To increase a firm's value, the financial manager should try to reduce the:
A. Free Cash Flows (FCF)
B. Expected Growth Rate
C. Sales Revenue
D. Weighted Average Cost of Capital (WACC)
The conflict between shareholders (owners) and managers is known as the:
A. Capital Allocation Conflict
B. Agency Problem
C. Governance Failure
D. Financial Crisis
Which method best aligns managers' interests with shareholders'?
A. Paying a fixed high salary.
B. Reducing the firm's debt.
C. Granting stock options.
D. Increasing external borrowing.
The field that incorporates psychology to explain irrational investor decisions is:
A. Technical Analysis
B. Financial Engineering
C. Behavioral Finance
D. Standard Theory
The irrationality where investors are too slow to react to new market information is:
A. Overconfidence
B. Framing
C. Conservatism
D. Regret Avoidance
The tendency to make conventional decisions to avoid high disappointment if they fail is:
A. Conservatism
B. Overconfidence
C. Framing
D. Regret Avoidance
: The idea that money today is worth more than money tomorrow is the:
A. Risk-Return Tradeoff
B. Weighted Average Cost of Capital
C. Capital Structure
D. Time Value of Money (TVM)
