Chapter 1

long-term investments. mix of investing and financing. project's cash flow. short-term assets and liabilities. working capital.

earnings per share. net income of the firm. resources of the firm. value of the existing stock. value of the firms

I and II only I and II only I, II, and III II and III only II only

capital budgeting. capital structure. cost of capital structure. financial structure. leverage structure.

the agency cost. the agency problem. the costs of any conflicts of interest between stockholders and management. the costs that result from default and bankruptcy of a firm. the total interest paid to creditors over the lifetime of the firm.