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13 Cards in this Set
- Front
- Back
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Financial engineering
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Creation of new securities or financial processes.
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Sole proprietorship
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A business owned by a single individual.
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Capital markets
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Financial markets where long-term debt and equity securities are bought and sold.
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Agency problem
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The possibility of conflicts of interest between the shareholders and management of a firm.
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Working capital managemen
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Planning and managing the firm's current assets and liabilities.
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Capital structure
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The mix of debt and equity maintained by a firm.
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Regulatory dialectic
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The pressures financial institutions and regulatory bodies exert on each other.
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Derivative securities
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Options, futures, and other securities whose value derives from the price of another, underlying, asset.
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Capital budgeting
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The process of planning and managing a firm's investment in long-term assets.
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Corporation
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A business created as a distinct legal entity owned by one or more individuals or entities.
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What long-term investments should the firm take?
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Capital Budgeting Decision
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How should the firm manage its everyday financial activities?
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Capital Management Decision
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Where will the firm get the long-term financing to pay for the investment?
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Capital Structure Decisison
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