Practice Financing Decisions - 23.5.B | 23. Introduction to Financial Management | Management 1 (Organizational Behaviour/Finance & Accounting)
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What are the two main types of financing sources?

💡 Hint: Think about how companies get money.

Question 2

Easy

What is financial leverage?

💡 Hint: Focus on the relationship between debt and profit.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

Which of the following is a source of equity financing?

  • Bank loan
  • Venture capital
  • Bond

💡 Hint: Think about how a company can gain investors.

Question 2

True or False: Financial leverage increases the potential for profit but also the risk of loss.

  • True
  • False

💡 Hint: Consider the effect of debt on outcomes.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A tech company is considering whether to raise funds through debt or equity to finance a new project. Analyze the risks and benefits of each option given their current financial state.

💡 Hint: Consider current debt levels and market conditions.

Question 2

Calculate the cost of capital for a company planning to fund its operations using 60% debt at an interest rate of 5% and 40% equity with a required return of 10%. What would be the company’s weighted average cost of capital?

💡 Hint: Use the formula for WACC considering the proportions of each financing method.

Challenge and get performance evaluation