Corporate Finance Concepts

The purpose of a corporation is to ____ shareholder value

The ____ equitation is: Assets = Liabilities + Owners Equity

Shareholder value is represented by which part of the above equation?

Cash collected from operating a business

Cash paid to operate a business (Costs)

Cash left after paying expenses

Costs that remained fixed

Costs that are variable

EBIT

EBITDA

The principle that a dollar in the future is worth less than a dollar today.

Present value is derived from ____ future cash flows

Future value is derived from ____ present cash flows

The rate at which present and future values are derived

The present value of inflows - outflows for a project

The discount rate at which PV of outflows = PV of inflows

How quickly an investment pays back its initial costs

Weighted average cost of equity and debt

What is the mix of equity and debt called?

When debt increases and equity remains the same, ____ increases

What is it called when a company can not pay back it's debt?

The tax benefit created by using debt is called

The idea that capital structure does NOT affect firm value in a no-tax world is called what?

The idea that more leverage increases equity risk is called what?

What officer in a company is in charge of finances?

What is it called when managers in a company act in their own interest and not in the shareholders?

Cost that arises from conflicts between shareholders and debt holders?

What is it called when managers reject good projects because most of the benefits go to debt holders?