Question

Describe the core principles of corporate finance. Explain: 1) the goal 2) major types of long-term...

Describe the core principles of corporate finance. Explain: 1) the goal 2) major types of long-term and short-term financial decisions 3) for each major decision, name an example.

Homework Answers

Answer #1

Core principles of corporate finance are

1.investment

The funds are to be invested at a places which increases the wealth of the entity

2.finance principle

Funds should be sourced from sources which results in lower overall cost of capital

3.dividend principle

Regarding when to retain earning and when to distribute them...

Longterm and shortterm decisions

Longterm investment decision

Investing in building is an example of this decision

Shortterm investment decision

Investing in stock for running business is an example of this decision

Longterm finance decision

Borrowing funds from bank as longterm loan is an example of long term finance

Shortterm finance

Bank overdraft is an example of shortterm finance,trade credit is another example...

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. The Financial Management Decision Process. What are the three types of financial management decisions? For...
1. The Financial Management Decision Process. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant. 2. Sole Proprietorships and Partnerships. What are the four primary disadvantages to the sole proprietorship and partnership forms of business Page 19organization? What benefits are there to these types of business organization as opposed to the corporate form? 3. Corporations. What is the primary disadvantage of the corporate form...
Q3)​Sources of Finance State and briefly describe each type of Debt & Equity (Long Term &...
Q3)​Sources of Finance State and briefly describe each type of Debt & Equity (Long Term & Short Term) Finance.
1) Describe opportunity identification for the entrepreneur. 2) In your own words, state what is meant...
1) Describe opportunity identification for the entrepreneur. 2) In your own words, state what is meant by the term innovation. 3) Name, and describe in detail one of the major misconceptions commonly associated with innovation. 4) Explain the challenges in new venture development. 5) Provide an example of a financial decision that can cause a new venture to fail. Explain in detail. 6) How can asking the right questions help an entrepreneur evaluate a new venture? What sort of questions...
There are two major types of agency problems in corporate finance: Type 1 agency problem: Free...
There are two major types of agency problems in corporate finance: Type 1 agency problem: Free Cash Flow Diversion/Squandering. Conflict of interest between managers and shareholders. Type 2 agency problem: Debt Overhang/Under-investment. Conflict of interest between bondholders and shareholders. 1. If a company increases its leverage, then type 1 agency problems will: a)Increase b)Decrease c)Not change 2. If a company decreases its leverage, then type 2 agency problems will: a)Increase b)Decrease c)Not change 3. Due to a decrease in dividend...
Select one of the following asset classes: Large-company stocks, small-company stocks, long-term corporate bonds, Long-term U.S....
Select one of the following asset classes: Large-company stocks, small-company stocks, long-term corporate bonds, Long-term U.S. government bonds, or U.S. Treasury Bills. Describe a particular aspect of your chosen asset class from one of the following: 1) Provide the definition 2) Provide an example that belongs to the class 3) Describe the history of total returns 4) Describe the historical mean and standard deviation
Which of the following is inconsistent with long-term corporate value maximisation? Question 1 options: 1) A...
Which of the following is inconsistent with long-term corporate value maximisation? Question 1 options: 1) A focus on overly generous short-term stock options 2) A focus on long-term wealth maximisation 3) The concept of patient capitalism 4) The avoidance of deceptive and dishonest business practices. 5) None of the given answers.
1. Discuss the two types and causes of short term employment. 2. Discuss the two types...
1. Discuss the two types and causes of short term employment. 2. Discuss the two types and causes of long term employment. unemployment* for both questions
List and briefly describe 4 types of processor scheduling policies. ( 0.25 point each) Compare Long...
List and briefly describe 4 types of processor scheduling policies. ( 0.25 point each) Compare Long Term, Medium Term and Short Term scheduling ( 1 point) List 4 desired scheduled algorithm characteristics ( 0.25 point each)
1. Explain the law of demand as it relates to price and quantity. 2. Describe what...
1. Explain the law of demand as it relates to price and quantity. 2. Describe what the concept excess burden means, and how it measures tax inefficiency. 3. Describe the three key elements that result in globalization. 4. Describe the major field of economics called macroeconomics. 5. What are the four types of free market competition? 6. What is the minimum wage law? Provide an example of a minimum wage.
1.) Explain why the notes are an integral part of the financial statements 2.) Explain why...
1.) Explain why the notes are an integral part of the financial statements 2.) Explain why the characteristics of comparability and consistency are important in financial reporting 3.) Explain the differences between accounts payable, short-term debt, current maturities of long-term debt, accrued liabilities and unearned revenue.