Fundamentals Of Corporate Finance 9th Edition Test Bank

Corporate Finance (defined) {Ans: the study of the relationship between business decisions and the value of the stock in the business}balance sheet identity {Ans: Assets = Liabilities + Shareholders' Equity}3 things financial manager should keep in mind when evaluating income statement {Ans: GAAP, cash v. noncash items, time and costs}Goal of Financial Management {Ans: to maximize the current value per share fo the existing stock}Partnership (2 types) {Ans: business formed by 2 or more individuals or entities. general: partners receive equal profits and liability limited: one or more of the partners will be subject to liability, others will be limited but not actively involved in management. division of profits is relative.}Capital Structure (or Financial Structure) {Ans: the mixture of long-term debt and equity maintained by a firm to finance its operations}