Business Administration - Accounting & Financial Planning FIN401 Study Guide - Midterm Guide: Corporate Finance, Capital Structure, Capital Budgeting

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3 hours- tues, oct 24 -7:00-10 p. m: 10 problems/short answers- 100 marks, chapters 1, 3, 5, 9,10,16,17, read the text book, go through problems done in class as well as assignment problems. Forms of business org- sole prop/partnerships/corporations: finance tries to help financial managers to answer (i. e. make decisions about) the following questions: What long-term investments or projects the firm should undertake? (capital budgeting decision) By issuing equity or debt? (capital structure decision) How much trade credit the firm should provide or use? (working capital management decision: these decisions are made within a risk-return framework, in order to raise money for the investments and operations of the. The financing decision firm, the financial manager can use: External financing sources: two broad categories of external financing: Equity financing: the choice between these two external sources is called the. The role of management and agency issues the shareholders.