Study guides, Class notes & Summaries

Complete Solutions Manual for Corporate Finance 6e 6th Edition by Jonathan Berk, Peter DeMarzo. ISBN-13: 5026 Excel Solution files are included. PART 1: INTRODUCTION The Corporation and Financial Markets Introduction to Financial Statement Analysis Financial Decision Making and the Law of One Price PART 2: TIME, MONEY, AND INTEREST RATES The Time Value of Money Interest Rates Valuing Bonds PART 3: VALUING PROJECTS AND FIRMS Investment Decision Rules Fundamentals of Capital Budget...

Test Bank for Corporate Finance 6e 6th edition by Jonathan Berk, Peter DeMarzo. ISBN-13: 5026 Full Chapters test bank are included PART 1: INTRODUCTION The Corporation and Financial Markets Introduction to Financial Statement Analysis Financial Decision Making and the Law of One Price PART 2: TIME, MONEY, AND INTEREST RATES The Time Value of Money Interest Rates Valuing Bonds PART 3: VALUING PROJECTS AND FIRMS Investment Decision Rules Fundamentals of Capital Budgeting Valuing S...

What is Corporate Finance? - ANSWER-No matter what type of business you started, you would always HAVE to answer these 3 Important questions relating to Finance: What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 1* - ANSWER-1. *WHAT* long term investments should you take on? EX: Line of Business and Buildings, Machinery, Equipment. What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 2* - ANSWER-2. *WHERE* will you get the long term fina...

Book value - ANSWER-amount of capital firm has received from shareholders in the past Market Value depends on... - ANSWER-future dividends shareholders expect to receive Common Stock - ANSWER-Gives the shareholder ownership of a corporation; power to elect board of directors Additional Paid in Capital - ANSWER-(Issue Price-Par Value)*Number of shares M&M - ANSWER-given no taxes and well-functioning capital markets, the market value does not depend on the capital structure, i.e., debt...

Major Areas of finance - ANSWER-Corporate, Investments, Financial Institutions, International Finance Corporate Finance - ANSWER-broadest area, important is all types, includes making decisions regarding plant expansions to choosing what type of securities to issue when finance an expansion Investments - ANSWER-financial assets -stocks and bonds; study of investments two branches; Portfolio management--money is manages for individuals; Security Analysis--research of individual assets i.e. ...

What is corporate finance? - ANSWER-To carry on business, corporations need an almost endless variety of real assets. Many of these assets are tangible, such as machinery, factories, and offices; others are intangible, such as technical expertise, trademarks and patents. All of them need to be paid for. How does the company obtain the money necessary? - ANSWER-The corporation sells claims on its real assets and on the cash those assets will generate. These claims are called financial assets o...

Working capital management includes which one... A. Deciding which new projects to accept B. Deciding whether to purchase a new machine or fix a currently owned machine C. Determining which customers will be granted credit D. Determining how many new shares of stock should be issued E. Establishing the target debt-equity ratio - ANSWER-Determining which customers will be granted credit Which one of the following is a working capital decision? Multiple Choice A. How should the firm ...

T/F: Modigliani and Miller published theoretical papers that changed the way people thought about financial leverage - ANSWER-True What assumptions underlie the MM and Miller Models? - ANSWER-+Firms can be grouped into homogeneous classes based on business risk. +Investors have identical expectations about firms' future earnings. + There are no transactions costs + No agency or financial distress There are two more assumptions that underlie the MM and Miller Models? - ANSWER-+...

holders of debt securities typically are rewarded by receiving interest on the funds loaned to a firm, and by sharing in the increased wealth of the firm as the firm profits - ANSWER-False the primary market for a security is one where the original offering of the firm's financial assets takes place - ANSWER-True in firms of moderate size or larger, the finance department is typically relieved of the trite "watchdog" responsibility of assessing ad managing the efficient use of the firm...

CFO - ANSWER-the top financial manager within a firm Treasurer - ANSWER-Oversees cash management, credit management, capital expenditures, and financial planning Controller - ANSWER-Oversees taxes, cost accounting, financial accounting and data processing Financial Management Decisions - ANSWER-Capital Budgeting Capital Structure Working Capital Management Capital Budgeting - ANSWER-the process of planning and managing a firms long term investments Capital Structure - ANSWER-the...

What are the parts of the cash flow statement? - ANSWER--Cash flow from Operating Activities -Cash flow from Investing Activities -Cash flow from Financing Activities What are cash inflows from financing activities? - ANSWER--debt issuance, common stock, preferred stock What are cash outflows from financing activities? - ANSWER--retirement of debt, common stock/preferred stock -payment of cash dividend What are cash outflows from investing activities? - ANSWER--purchase of plants and...

1.1 How do you understand the following statement: "Corporate Finance is focused". - ANSWER-Goals of the Corporation: Shareholders desired wealth maximization. 1.2 Who are the principal financial managers in a corporation? Write down their main responsibilities. - ANSWER-Chief Financial Officer (CFO): Supervises all financial functions and sets overall financial strategy. Treasurer: Responsible for financing, cash management, and relationships with banks and other financial institutions ...