ETS Corporate Finance Quiz #1
Please select one option for each question.
Question 1: The difference between a company's current assets and current liabilities.
Working Capital
Free Cash Flow
Financial leverage
Question 2: the use of debt to finance a company's operations.
Working Capital
Free Cash Flow
Financial leverage
Question 3: a measure of a company's financial leverage that compares its total debt to its total equity.
A debt-to-equity ratio
Free Cash Flow
Capital budgeting
Question 4: the cash generated by a company's operations after accounting for capital expenditures.
A debt-to-equity ratio
Free Cash Flow
Capital budgeting
Question 5: the process of determining which long-term investments a company should make to maximize shareholder value.
A debt-to-equity ratio
Free Cash Flow
Capital budgeting
Question 6: a model that calculates the expected return on an investment based on its level of risk.
CAPM
Risk return tradeoff
Systematic
Submit