What is Finance?
The management of money (Raising money, investing money, and overseeing financial resources)
What are the four components of the Corporate Financial Toolbox?
1) Accounting Statements and Ratios
2) Present Value
3) Risk and Return Models
4) Spreadsheet Modeling
Describe the 3 Corporate Financial Decisions.
1) The Investment Decision: Allocating scarce resources across competing uses
2) The Financing Decision: Raising funds to finance these projects.
3) The Dividend Decision: Returning funds to investors.
What happens to the price and demand of a pure commodity if the price increases?
Price increase leads to an increase in demand, which then leads to a decrease in price
True or False. The price of gold decreases when people are scared.
False.
What are the biggest markets in the world?
Currency markets
In Debt Capital Markets, how does one raise capital ($)?
By issuing bonds
In Debt Capital Markets, what do interest rates reflect?
The base cost of capital in the economy
In Equity Capital Markets, how does one raise capital?
By issuing stock
True or False? Issuing stocks in an equity capital market is essential to finance economic growth.
True.
Which of the two is the barometer of economic health?
Equity Capital Markets OR Debt Capital Markets
Equity Capital Markets
What is the role of government in capital markets (3 facets)?
Regulator--Investor--Market Controls
True or False? In an efficient capital market, stock prices do not reflect stock values.
False. They do.
What are three current market issues?
Financial Crisis
Insider Trading
High Frequency Trading
CQ: What country ranks #1 in economic freedom?
Hong Kong
CQ: What country ranks last in economic freedom?
North Korea
What sector was a major cause of the recent financial crisis?
The housing and mortgage credit crisis: "credit crunch
List the 4 common elements of financial crises?
1) Excessive investment in an asset class
2) Easy financing usually involved (easy loans; low interest rates)
3) Government bailout needed
4) It will happen again in 5-10 years
What does Berkshire Hathaway's common stock currently trade for?
Over $100,000 a share
What strategic financial decisions does Buffett employ to create shareholder value?
1) Doesn't issue a dividend
2) Hasn't split stock
3) Created class B shares
What has the average return on Berkshire Hathaway's stock been over the past 20 years?
over 18%
Buffett is characterized as a __________ investor.
VALUE
True or False? Buffet prefers investing in technology companies.
False. He NEVER has.
When does Buffett decide to invest in a company?
When he believes it is undervalued
What does Berkshire Hathaway primarily do?
Insurance
True or False? Buffett prefers to own stocks as opposed to companies.
False. Vice versa
Which of the following is not a key to Warren Buffett's investment strategy?
A. Prefers companies to stocks
B. Management acts like owners
C. No barriers to entry
D. No tech. companies
E. Generators of cash flow
C--He likes when there are barriers to entry (Moats)
What financial metrics does Buffett use in his analysis of companies?
% Profit Margin
% Return on Equity
There is a(n) ____________ relationship between risk and return.
POSITIVE
Investors prefer ________ risk to _________ risk.
LESS; MORE
What is the formula for a stock return?
(Change in price-Dividend)/ Initial Price
True or False? Standard deviation calculation is a measure of risk.
True.
What is the average stock return in the US?
10%
What asset class has the lowest risk and lowest return?
Treasury bills
True or False? It is difficult to beat efficient capital markets.
True.
What does it mean to "beat the market"?
Your group of stocks went up more than the market did.
Current stock prices reflect ________________ and react __________, _______________, & almost ________________ to incorporate the receipt of new information.
All publicly available information; completely, correctly, and almost instantaneously
True or False. If the stock market is efficient, you should forecast future prices by technical and fundamental analysis.
False. If it's efficient, it is useless to forecast.
Rational investors are risk __________.
AVERSE
Which stock is riskier?
Stock A: Mean Return is 10% and Standard Deviation is 10%
Stock B: Mean Return is 10% and Standard
Deviation is 20%
Stock B is riskier, because it has a higher standard deviation (greater dispersion of return, so more uncertain)
How is the market price of a stock determined?
By the interaction of the supply of stock by sellers and the demand for stock by buyers
What does "Random Walk" mean?
Daily stock price changes are random
True or False? The best forecast of tomorrow's stock price is today's price.
True.
Is a stock's current price always a good indication of the long-term value of a company?
No, because it may be influenced by supply shocks or a sudden demand for a product
What are stock prices driven by in the long-term?
Driven by earnings
What are your three "enemies" and why are they enemies?
Transaction Costs, Taxes, and Inflation because they reduce investment returns
A dollar _________ is worth more than a dollar ______________.
TODAY; TOMORROW
What is "compounding"?
The process of going from today's value, or present value, to some expected but unknown future value
What is future value?
The amount of money that an investment will grow to at some future date by earning interest at a certain rate
What is "discounting"?
The process of going from an expected future value to a present value
What is the most important decision governing returns?
Asset Allocation
What asset class(es) has/have a lower risk than a Small Cap Stock but a higher risk than a Corporate Bond?
Large Value and Large Growth stocks
What Asset Class has the highest risk and highest potential return?
International Stocks
True or False? After you accrue about 100 stocks in your portfolio, your risk doesn't really decrease by that much more.
True. (diminishing benefits of diversification)
What is the Capital Asset Pricing Model?
A simple model that estimates the rate of return an investor should expect to receive on a risky asset.
What does the CAPM state?
The expected return of a risky asset, such as a common stock, is equal to the return on the risky-free asset plus a risk premium.
If Beta is >1.0, is the stock more or less risky?
More risky
CQ: Who believes least in traditional finance?
A. Finance professors
B. Investment Bankers
C. Equity Traders
D. CFOs
E. Fund Managers
C. Equity Traders
List the following in order of most traditional to least traditional.
Finance Professors
Equity Traders
Mutual Fund Companies
Investment Bankers
CFOs
Finance Professors
Investment Bankers
CFOs
Mutual Fund Companies
Equity Traders
Between the Treasurer and the Controller, who is in charge of the accounting responsibilities?
Controller
Name the activities that the Treasurer is in charge of.
Financial Planning
Capital Budgets
S-T and L-T Capital Requirements
Cash Management
Working Capital
Name the activities that the Controller is in charge of.
Financial Statements and Reports
Financial Systems
Operating Budgets
Audits
Taxes
List the elements of the New Corporate finance Environment.
-Advances in Information, Systems, and Telecomm. Technologies
-Growth in Trade and Direct Investment
Deregulation and Growth of Global Markets
Greater economic Volatility and Risk
New Complex Financial Instruments
Institutionalization of Markets
New Marke
What does Working Capital Management deal with?
Day to day financing activities--Managing S-T financial position of the firm (Operational side of finance)
True or False. If you're going to grow, you have to invest.
True.
What does Capital Budgeting deal with?
Managing investments in Long-Term Assets
CQ: What company leads the US in sales?
A. Exxon
B. General Electric
C. Microsoft
D. Apple
E. Walmart
A. Exxon
CQ: What company has the most cash?
A. Exxon
B. General Electric
C. Microsoft
D. Apple
E. Walmart
B. GE
What do Capital Structure decisions deal with?
Managing the financing mix between debt and equity
CQ: What company invests the most in plants?
A. Exxon
B. General Electric
C. Microsoft
D. Apple
E. Walmart
A. Exxon
CQ: What company has the most debt?
A. Fannie Mae
B. Bank of America
C. Citigroup
D. JP Morgan Chase
E. Freddie Mac
A. Fannie Mae
What does it mean to create shareholder value?
Decisions are aimed at increasing the value of the firm, and the value is usually (and hopefully) reflected in the stock price
What is the best defense against a hostile takeover?
A high stock price
What are 4 basic management tenets?
1) Efficiency
2) Accountability (to stockholders)
3) Management must have a stake in the company (own stock)
4) Role of liberator
What is the Market Cap(italization)?
The aggregate Market value of a company's stock
=# shares * price per share
Why is the Market Cap important?
To grow, invest, acquire, and compensate
CQ: Which company is worth the most?
A. Exxon
B. General Electric
C. Microsoft
D. Apple
E. Walmart
D. Apple
Why is gold considered a "store of value"?
Because when people get scared, they buy gold
What is the current value of the Dow Jones?
16,500
What is the current price of gold?
$1,250 and oz.
What is the current 30-year treasury yield?
3.75% (hasn't been this low since Sputnik)
What is the Yen/$ and $/Euro exchange rates?
105/1 and 1/35
What is the current NASDAQ value and what has its behavior been recently relative to the overall stock market?
4,200--increased more invalue than the overall stock market
What is the current price of a barrel of oil?
$95
What is the current value for the S&P 500 VIX and what does it measure?
13 and it measures market volatility (fear index)--increases with fear
What is a corporate stakeholder?
Anyone with an economic interest in a business
What is the difference between a stakeholder and a stockholder?
Stakeholders are protected by contracts whereas stockholders have a residual claim on the firm's cash flows
What two things must management work to simultaneously accomplish?
Satisfying stakeholders while maximizing firm value
What are the Dual Challenges of Management?
Providing high quality products at competitive prices AND providing competitive returns to investors
What are 5 challenges to the Shareholder Value Standard?
1) Too much focus on markets and expectations
2) Short-term horizon
3) Issues with capital markets (crises, flash crashes)
4) Financial scandals (tied to markets)
5) CEO Compensation (because so much of compensation tied to stockholders)
How does management create shareholder value in relation to Asset and Liability Management?
Return on Investment > Cost of Capital
What are two goals of asset management that create shareholder value and what do they use to accomplish them?
1) Allocate capital to investments offering the highest risk-adjusted returns
2) Minimize the amount of capital required to achieve the company's objective
Use: working capital management and fixed capital management
What is the goal of Liability management that creates shareholder value and what do they use to accomplish this?
Minimize the cost of capital through financial engineering (debt/equity management, financial innovation, strategic risk management)
What is the goal of equity management that creates shareholder value and what do they use to accomplish this?
To enhance performance through ownership structure
True or False? Debt costs less than equity.
True.
True or False? A corporation is a legal entity.
True.
What are the advantages of a corporation?
-Limited liability
-Ability to raise capital
-Ease of transfer
What are the disadvantages of a corporation?
-Ease of formation
-Double taxed (corporation and investor)
What industry were the first corporations a part of?
Railroads
What is corporate governance?
The system of rules, practices, and processes by which a company is directed and controlled.
What is the core issue of Corporate Governance?
The Agency Problem--management and shareholder interests not aligned
What "separation" is intrinsic to the Agency Problem?
Assets are owned by stockholders but controlled by management
What are two "agency costs"?
1) Small scale: management perks
2) Large scale: large investments, especially acquisitions (impact stock value)
What are the 4 Internal Control Mechanisms designed to avoid the agency problem?
1) Board of Directors
2) Audited Financial Statements
3) Stock-Value Based Compensation
4) Stock Ownership Interest
What are the 3 External Control Mechanisms designed to avoid the agency problem?
1) Hostile Takeovers
2) Proxy Contests
3) Shareholder Activism
What is a proxy contest/fight?
When a company/investor tries to get control of the Board of Directors by getting shareholders to vote for their board members
Who has replaced the Danny Devitos in the Public's Eye?
The "bad guys" have become the CEOs and activist investors
What is Bernie Madoff known for?
Running the largest Ponzi scheme ever
What is a Ponzi Scheme?
A fraud in which invested money is pocketed by the schemer and investors are paid out of proceeds from new investors
What rate of return did Bernie Madoff promise to his investors and how long did the scheme continue?
8%; 30 years
How did Bernie Madoff continue to get away with his scheme?
1) continually bringing in new money
2) no one knew his true books (besides his crooked auditor, false financials)
3) there was no run on the bank
What rate of return did Charles Ponzi promise to his investors and how long did the scheme contineu?
50% return; 6 months
How was Madoff's scheme uncovered?
The recent stock market crash led to a bank run, and he had no money to give people
What were the three failures of internal control mechanisms in the 1980s?
1) Diffusion of Stock Ownership: reduced stockholder influence in corporate governance issues; cost of monitoring management performance too high
2) Unfair Corporate Voting Procedures (Board Members and Management): proxy solicitation procedures; access t
What were "junk bonds" associated with in the 1980s?
Easy financing
Describe the White Knight Corporate Defense.
The target company finds a friendly merger candidate--may even increase after-tax market value of securities if deal is "tax-free" exchange of stock
Describe the Pac-Man Corporate Defense.
The target company employs a counter-takeover bid for the aggressor, announcing that they are acquiring the aggressor and making necessary advances to do so
Describe the Greenmail Corporate Defense.
The target company purchases the acquiror's shares at a premium over the market price
Describe the Golden Parachutes Corporate Defense.
This defense provides compensation to top-level executives in the event of a change of corporate control
Describe the Self-Tender Offer Corporate Defense.
The target company agrees to purchase some of the current outstanding shares from its shareholders, usually at a price above what the acquiring company is offering
Describe the Poison Pill Corporate Defense.
Used to make a stock unappealing to others by making a takeover extremely expensive--they give current shareholders the right to purchase shares of the company at a bargain price, contingent on another firm acquiring control, which dilutes the stock and m
Describe the Crown Jewels Corporate Defense.
When threatened with a takeover attempt, target company may sell off some of its major assets (crown jewels)
What was the 1990's solution to the 80s corporate governance problem?
Shared governance between big institutions and the Board of Directors (big funds teamed up with management)
What are some of the characteristics of corporate governance in the 1990s?
-The Board's Role Changed (CEOs fired for poor performance)
-Debate over executive compensation (management pay vs. performance and issue of management stock ownership)
-Institutional Investors became more involved in corporate governance issues (proxy ru
True or False? The 1990s were the longest running period of economic expansion in US history.
True
Identify and describe 5 Crises in Corporate Governance.
1) Executive Compensation dominated by stock options (incentives to keep stock price up)
2) The BOD not overseeing management (not independent of management)
3) Accounting and auditing dominated by stock options (allowed cooking of books to keep clients)
What was the 2002 solution to the Corporate Governance crisis?
The Sarbanes-Oxley Act--made management responsible for financial statements:
--CEOs must sign off on financial statements
--Audit committees must be composed of outside directors
--Companies cannot make loans to directors
What happened in the market in the 2000s?
Crashes and Scandals
-Growth with debt
--Financial crisis
---Recovery with bumps
Who is to blame for the recent financial crisis?
Both the government (lax. regulation and oversight, promotion of home ownership, low interest rates, missed housing bubble) and wall street (lax underwriting standards on mortgages, promotion of risky products, excessive leverage and risk taking, poor ris
Name 3 current trends in corporate governance.
1) The return of defense mechanisms
2) Activist investors come back (big hedge funds seeking big returns)
3) Company buyouts involving hedge funds/private equity firms (companies acquiring themselves with hedge funds for big returns)
Who is one notable activist investor?
Carl Icahn
What is an "activist investor"?
An individual or group that purchases large numbers of a public company's shares--investment usually follows a period of poor performance; activists seek changes in management and structure, and they believe changes will make the company more valuable
True or False. Activist investors have been beneficial to stockholders.
True
What are the characteristics of the Anglo-American model of corporate governance?
Minority shareholders with board
problems led to 80s takeovers
fluid capital model (capital flows to firms with best prospects to create shareholder value)
What are the characteristics of the Japan-Germany Dedicated capital model of corporate governance?
large equity holders provide oversight
very few takeovers
What characterizes the Rest of the World Majority Owner Model?
majority equity owner oversees management
What does "dedicated capital" mean?
equity is not sold-corporate governance issues
What does Singapore Airlines teach us about corporate governance?
Great companies do not always make great stocks
What is the biggest public accounting firm?
Deloitte
Who cares about financial statements?
Everyone
What is GAAP?
standardized procedures and processes for financial statements
Describe a balance sheet.
It reports, as of A CERTAIN POINT IN TIME, the assets, liabilities, and equity of the owners
Describe an income statement.
It reports, FOR A CERTAIN INTERVAL, revenues, expenses, and net income
Describe the statement of cash flows.
It reports, FOR A CERTAIN INTERVAL, amount of cash generated and consumed by a company through operating, financing, and investing activities.
Which statement is most important for finance purposes?
Statement of cash flows
What is outlined in the notes to financial statements?
accounting estimates and judgments
What are three uses of financial statements?
Administrative control, resource allocation, and management stewardship
CQ: Which is true?
A. A/R is on the Income Statement
B. Investing activities are a source of cash
C. A/P are assets on the BS
D. Operating profit is EBIT
E. Revenues = profits
D
CQ: Which is true?
A. R&D is an asset on the BS
B. Depreciation is a source of cash
C. Retained earnings are an asset
D. Assets = liabilities
E. Tangible assets are on the BS
B
Book value = ?
purchase price - depreciation
What is goodwill?
An intangible asset where a company buys another company/asset for more than "worth
What is the difference between the two sets of books that all companies keep?
1) Taxes (Accelerated depreciation)--report lower income and pay lower taxes
2) Investors (Straight-line depreciation)--to look like you have a higher income
True or False? Depreciation is a cash expense.
False. It's a NON-CASH expense.
What is the Revenue Recognition principle?
Revenue is recognized when a good or service is provided
What is the Matching Principle?
Expenses incurred in providing a good or service are recognized in the period that the sale is made
Walk through the steps of finding Gross Profit, Operating Profit, and Net Profit.
Sales
-COGS
=Gross Profit
-SG&A Expenses
-R&D Expenses
-Depreciation
=Operating Profit
-Interest Expense
=Profit Before Taxes
-Taxes
=Net Profit
What are the three sources and uses of cash?
Operating, Investing, and Financing
What is the primary source of cash?
Operating
What is the primary use of cash?
Investing
Net Worth = ?
Assets - Liabilities
What is the current GDP growth (nominal)?
7%
What are the two rules for growth (what do you want)?
1) Want to see Net Income grow faster than sales--achieving economy of sales; increase revenues faster than expenses
2) Want to grow EPS faster than net income-buy back shares to reduce denominator in EPS
What is top-line and what is bottom-line growth?
Top: sales
Bottom: net income
CQ: Accounts are computed as a % of ______ on the CS Income Statement.
Sales
What is the purpose of the CS Income Statement?
To detect trends and make comparisons
All asset accounts are expressed as a percent of ____________ on the CS Balance Sheet.
Total Assets
All liability/equity accounts are expressed as a percent of ______________.
Total liabilities + equity
True or False? You want your top line growing faster than your bottom line.
False. Vice versa
CQ: Which ratios measure the efficiency of management?
Activity ratios
CQ: Which ratios are of most interest to suppliers?
Liquidity ratios
What is the purpose of liquidity ratios?
To measure firm's ability to meet short-term obligations; closely related to size and composition of working capital position; all things equal, higher working capital implies more liquid position
What is the purpose of activity ratios?
Asset utilization ratios; measure efficiency; measures how well a firm uses productive resources; related to the amount of sales generated per dollar invested in a particular asset; related to receivables, inventory, and total assets
*
on asset turnover r
What is the purpose of leverage ratios?
Measure risk focusing on financing mix; examine extent to which firm uses debt to finance operations; higher leverage results in higher risk
If you're looking to see if a company is in financial trouble, what is the #1 metric to use?
Days Payable Outstanding Ratio (if it goes way up, the company is not paying bills)
What is the purpose of profitability ratios?
(a.k.a. operating ratios) Measure management's overall effectiveness
What is the purpose of valuation ratios and which one is the best known ratio?
Determine value investors place on the company; P/E Ratio
CQ: A company's P/E Ratio is primarily driven by...?
A. Expected Growth
B. Profits
C. Sales
D. Return on Equity
E. Risk
A.
What is the current ROE value for the S&P 500?
15%
A capital-intensive business has high or low margins?
High
Wholesale retail stores have high or low margins?
Low
What are the ROA economic forces?
Capital intensity and barriers to entry
What are the ROA strategic forces?
Customer focus and commodity item
Quiz Question: Jennifer is selling her iPhone which is worth $500 to Dave. Dave suggests the following options. The most financially valuable option for Jennifer is
A. Immediate cash payment of $500
B. Cash payment of $500, a year after the Sale
C. Cash p
A
Quiz Question: Which of the following would increase an investor's real rate of return?
A. Brokerage firms increasing the commissions on executing a trade for an investor
B. The government raising the capital gains tax on investments
C. Higher asset manag
D
Quiz Question: What is working capital management?
A. Determining the optimal use of debt and equity for a firm
B. Managing a firm's short-term financial position
C. Choosing the best option for financing an acquisition
D. Managing investments in property
B
Quiz Question: Which activity is most likely to increase shareholder value?
A. Minimizing the company's cost of capital
B. Minimizing the amount of projects the company spends money on
C. Financing the company's business with expensive debt
D. Maximizing
A
Quiz Question: Which of the following is an example of an internal control mechanism used to ensure that management acts in shareholder interests?
A. Shareholder Activism
B. Market for Corporate Control
C. Managerial Labor Market
D. Threat of Takeover by
E
Quiz Question: 2. Which of the following does Warren Buffet believe is necessary for investment in a company:
A. Low barriers to entry
B. Management that acts without owner interests
C. Prefers to buy and sell shares quickly
D. Enjoys investing in high-te
E
Quiz Question: Which of the following is not a part of the corporate financial toolbox:
A. Accounting Statements and Ratios
B. Risk and Return Models
C. GAAP performance and Comparables
D. Present Value
E. Spreadsheet Modeling
C
Quiz Question: Stocks in which of the following industries would require the highest expected return for an investor?
A. Water companies
B. Electric companies
C. Telecom companies
D. Biotech companies
E. Property Insurance companies
D
Quiz Question: Which of the following is true about financial markets?
A. Markets only bring together buyers and sellers in common stocks
B. The U.S. is viewed as having the most free markets in the world
C. The pricing efficiency of the markets is not an
E
Practice Exam Question: Which of the following is true regarding corporate governance?
A. Management had a high level of stock ownership in the 1980s
B. In the 1980s CEOs were more likely to be fired than before
C. CEO's accountability for their performan
D
What does growth prospects correspond to?
The P/E Ratio
Practice Exam Question: Which of the following is a working capital decision?
A. A company refinances long-term debt at a lower interest rate
B.A company pays a dividend to stock holders
C. A company increases its R&D investment
D. A company changes its c
D
Practice Exam Question: What would you add back to Net Income to determine Operating Profit?
A. Dividends
B. Interest and Taxes
C. COGS
D. SG&A and Depreciation
E. Long-term debt
B
Quiz Question: Which of the following is true regarding depreciation methods?
A. Companies report the same financial results to investors that they report to the Internal Revenue Service
B. Using accelerated depreciation methods for fixed assets provides
E
Quiz Question: Which of the following is a measure of profitability?
A. Operating Margin
B. Days Sales Outstanding
C. Days Payables Outstanding
D. Fixed Asset Turnover
E. Current Ratio
A
Quiz Question: Which of the following is a measure of company's liquidity?
A. Fixed Assets Turnover
B. Profit Margin
C. Return on Equity
D. Quick Ratio
E. Return on Assets
D
Quiz Question: Which of the following is true regarding balance sheets?
A. They report the net assets generated and consumed, as well as the net income over a specific time period
B. They report the resources and the obligations of a company, as well as t
D
Quiz Question: Which of the following is true regarding income statements?
A. They report the company's assets, liabilities, and stockholders' equity over a specific time period
B. They report the net assets generated, the net assets consumed, and the net
B
Quiz Question: Shareholders' equity on the balance sheet is equal to which of the following?
A. The market value of company's shares in the market
B. The assets plus the liabilities of a company
C. Previous issued common stock plus retained earnings
D. Th
C
Quiz Question: If lenders want to assess the likelihood of borrowers being able to make interest payments, they would most likely look at which ratios?
A. Activity ratios
B. Liquidity ratios
C. Inventory ratios
D. Profitability ratios
E. Receivables ratio
B
Quiz Question: On the income statement, which of the following line-items represents the amount the company's employees receive?
A. Revenue
B. Selling, general, and administrative expenses
C. Interest expense
D. Cost of goods sold
E. Taxes
B
Quiz Question: Using the following information, calculate the Operating Margin:
Gross Sales: $16,400
Cost of Goods Sold: $8,100
SG&A: $950
Depreciation: $1,050
Interest Expense: $770
Tax Expense: $2,520
A. 18.4%
B. 50.6%
C. 24.8%
D. 40.1%
E. 38.4%
E
Quiz Question: Which of the following statements regarding the cash flow statement is true?
A. Working capital changes are accounted for as cash flows from investing activities
B. Financing activities include only dividend payouts
C. A typical company has
E
Quiz Question: Which of the following statements regarding the cash flow statement is true?
A. Changes in accounts receivables is an investing activity
B. The disposal or acquisition of plant, property & equipment is classified as an operating activity
C.
C
Quiz Question: Which of the following is the best indicator of the current interest rate environment?
A. Dow Jones Industrial Average
B. Price of gold
C. 30-year Treasury yield
D. Dollar-to-Euro exchange rate
E. S&P 500 VIX
C
Quiz Question: Minimizing the weighted average cost of capital (WACC) is the primary goal of which decision?
A. Working Capital Decisions
B. Risk Management Decisions
C. Capital Structure Decisions
D. Liquidity Decisions
E. Capital Budgeting Decisions
C
Which one of the following is a Capital Structure decision?
A. A firm's decision to purchase a large piece of machinery.
B. A firm's decision to fire 20 employees.
C. A firm's decision to investment in a new employee training program.
D. A firm's decision
E