University:
Eastern Kentucky University
Course:
FIN 301 | Corporate Finance
Academic year:

2022
Views:

230

Pages:

1
Author:

gildnar99xu

1. Corporate financing comes ultimately from: Savings by households and foreign investors. 2. Financing for public corporations flows through: the financial markets, financial intermediaries, or both. 3. A primary market would be utilized when: Securities are initially issued. 4. Financial markets and intermediaries: Channel savings to real investment. 5. A capital investment that generates a 10% rate of return is worthwhile if:Corporate bonds of similar risk offer 8% rates of return. 6. The cost of capital: for risk investments is normally higher than the firm's borrowing rate. 7. The cost of capital is the interest rate paid on a loan from a bank or some other financial institution. False 8. Corporate financing comes ultimately from: savings by households and foreign investors. 9. A company can pay for its expansion in all the following ways except: by purchasing bonds in the secondary market. 10. The primary distinction between securities sold in the primary and secondary markets is: whether the securities are new or already exist. 11. Which of the following are both a financial intermediary and a financial institution? Insurance companies 12. Which of the following financial assets is least likely to have an active secondary market? Bank loans made to smaller firms 13. Which one of these is a money market security? Commercial paper 14. A mother in a developing country wants to borrow the equivalent of $20 to enable her to start a small restaurant run by her family. Which type of financing is she looking to obtain? Micro loan 15. Corporate debt instruments are most commonly traded: in the over-the-counter market. 16. Short-term financing transactions commonly occur in the: money markets. 17. Long-term financing decisions commonly occur in the: capital markets. 18. Commodity and derivative markets: enable the financial manager to adjust a firm's exposure to various business risks. 19. Foreign currencies are traded: over the counter. 20. Which one of the following statements is not characteristic of mutual funds? They are always considered to be financial institutions.

Sources of Corporate Financing

Related Documents

Recommended Documents

Description

Related Documents

Want to Download This Document?

Free up your schedule!

Take 5 seconds to unlock