Question

match the most appropirate and correct columns to the number:

1. role of the financial manager a) price at which an option can be excercised.

2. intrinsic value b) amount of FCF re-invested in the company

3. FCF c) best method to evaluate a project

4. strike price d) negative within firm external factor.

5. plowback e) value of operations plus non-operating assets

6. NPV f) positive within firm external factor

7. cannibalization g) inforporate company's dividend policy and company's capital structure.

8. Apple's ipod and iTunes music store h) cash flow available to shareholders & creditors after company made investments in fixed assets &

working capital

9. company's financial plan i) surplus financing is needed

10- an increase on plan assets exceed

and increase in financing j) maximize shareholder value

Answer 1

1. role of the financial manager j) maximize shareholder value

2. intrinsic value e) value of operations plus non-operating assets

3. FCF h) cash flow available to shareholders & creditors after company made investments in fixed assets & working capital

4. strike price a) price at which an option can be excercised.

5. plowback b) amount of FCF re-invested in the company

6. NPV c) best method to evaluate a project

7. cannibalization d) negative within firm external factor.

8. Apple's ipod and iTunes music store f) positive within firm external factor

9. company's financial plan g) inforporate company's dividend policy and company's capital structure.

10- an increase on plan assets exceed and increase in financing i) surplus financing is needed