Financial ManagementFinal-Preparation

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Questions and Answers

1. What does issuing debt mean?A: Issuing debt means that a corporation issues bond or lend fund from public.

2. What does issuing equity mean?A: issuing equity means that a corporation issues stock.

3. Who issue bond?A: Government and corporation issue bond.

4. What does security mean in finance?A: In finance, security means equity and debt or stock and bonf.

5. What is bond called when corporate issue?A: It’s called Corporation Bond.

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Questions and Answers6. Among land, house, and saving, which one is the best choice in investment?A: Land is the best choice for investor to invest in long-term. 7. How can you raise fund for corporate?A: Corporate may issue bond or stock to raise money, or issue debt or equity instruments. 8. What should percentage between Bond and Stock?A: Bond should 40% and stock should be 60%.9. What is intangible asset?A: Intangible assets are all asset that have no physical shape and we cannot see.10. Give the example of intangible asset.A: Patent, Trade Mark, Copyright, quality, and any services.

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Questions and Answers11. What is current asset?A: Current assets are all assets that can be transferred into money within one year.

12. What is current liability?A: Current liabilities are all liabilities that organization has to pay back within 1 year.13. What is the difference between current asset and current liability?

A: The difference is that assets are our property, liability is the amount we due from others; Otherwise, the sum between CA and CL is ability to pay back short-term debt, called Net Working Capital. 14. What is corporate finance?A: Corporate finance is the actions that managers take to increase the value of the firm to the shareholders.15. How firm can raise fund?A: first, we can borrow from bank. Second, if the firm is Corporation firm, they may issue bond or stock.

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Questions and Answers16. What is Net Working Capital?A: NWC is ability or liquidity of asset transfer into cash to 17. What is Capital Structure?A: The capital structure is how a firm finances its overall operations and growth by using different sources of funds (INVESTOPEDIA, 2017)

18. What is Liquidity?A: ការបង្វិលជាសាច់ប្រា ក់ នលឿល�នបំផុត។19. What is current Ratio?A: is a Liquidity Ratio that measure a company’s ability to pay short-term and long-term liabilities.

20. What is Account Payable?A: គឺគណនីដែ�លលឿ�ីងជំពាក់លឿគ។

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Questions and Answers21. What is Net Present Value? A: is the different between the present value of cash in-flows and the present value of cash out-flows.22. What is Future Value of Money?A: គឺជាលុ�ដែ�លលឿ�ីងទទួល នលឿ"ថ្អនាគត លឿប្រាកា�លឿ'លលឿ�ីង�កលុ�លឿ�ីមលឿ)វនិិលឿ,គ។23. What is Present Value of Money?A: គឺជាទឹកលុ�លឿ�ីមដែ�លលឿ�ីង�កលឿ)វនិិលឿ,គឬ លុ�របស់ឆ្នា1 សូំន្យ។24. What is Future Value of Money Annuity?A: គឺជាលុ�ទទួល នលឿ'លអនាគតទទួល នមួ�ឆ្នា1 មំ្តង លឿប្រាកា�លឿ'ល�កលុ�លឿ)វនិិលឿ,គ។25. What is Present Value of Money Annuity?A: គឺជាសាច់ប្រា ក់�ំបូងដែ�លអតិថិជនលឿប្រាបីប្រា ស់ សប្រា5ប់វនិិលឿ,គលឿ6�ទូទាត់លឿ8�លឿគក1ងុ

លឿ'លមួ�ឆ្នា1 មំ្តង។

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Questions and Answers26. What is inventory turnover?A: is a ratio showing how many times a company’s inventory is sold and replaced over a period of time.27. What is cash equivalent?A: Cash equivalents are investments securities that are for short-term investing, and they have high credit quality and are highly liquid (INVESTOPEDIA, 2017).28. Example of cash equivalent: is commercial paper.

29. Example of Liquidity asset: Cash, Cash Equivalent, real estate, securities, and etc. 30. What is individual investor?A: individual investors who buy and sell securities for their personal account, and not for another company or organization (INVESTOPEDIA, 2017).

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Questions and Answers31. What is Institutional investor?A: a nonbank person or organization that trades securities in large enough share quantities or dollar amounts that it qualifies for preferential treatment and lower commissions (INVESTOPEDIA, 2017).

32. Risk can be called?A: be gained or lost when taking risk resulting from a given action or inaction foreseen or un foreseen.33. What is NPV?A: Net Present value to decide in investment.34. What is Annuity?A: is a contract between you and an insurance company un which you make a payment or service of lamp sump payment and in return obtain regular disbursement.35. What is Mortgage loan?A: is a loan in which property or real estate in used as collateral.

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Questions and Answers36. Write down A: Dividend Yield: Re= D0/P0

Capital Gain: Re= (P1 -P0)/P0

37. What is market size?A: is a measurement of the total volume of a government.38. What is Coupon rate?A: Face value x interest rate.39. What is Par value?A: is a per share amount appearing on stock certificate.40. What is Zero Growth?A: គឺជា ភាគលាភដែ�លស្ថិតក1ងុកប្រាមិត�ូចៗគ្នា1 ជាលឿរ?ងរហូត41. What is Constant growth?A: ជាតម្ភាគលាភដែ�លនឹងលឿកីនលឿAងីលឿ"ចុងប្រាគ្នាលឿថរ

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Questions and Answers42. What is Differential growth?

A: 5នន័�ថា5នកំលឿណីនប្ប្រាបលួលឿ"ចុងឆ្នា1 លំឿប្រាកា�ផ្ងៗ'ីគ្នា143. Growth formula

A: Grow rate = (present/past)1/n

44. What is Retention ratio?

A: is the retention ratio refers to the percentage of net income that is retained to

grow the business rather than being out as dividend.

45. What is Payback Period?

A: Payback = number of year to recover initial costs.

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Questions and Answers46. What is Competitive market?A: is a market structure in which the following five criteria are met: 1) All firms sell an identical product; 2) All firms are price takers - they cannot control the market price of their product; 3) All firms have a relatively small market share; 4) Buyers have complete information about the product being sold and the prices charged by each firm; and 5) The industry is characterized by freedom of entry and exit (INVESTOPEDIA, 2017).

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Questions and Answers

47. Write down stock return formula?

A: Stock return= (DV1/P0)+(P1-P0)/P0

48. Investors get capital gain from selling stocks.

49. Coupon rate payment គឺជាការបង់ថដ្ែ�ល ដែ�លអ្នកកាន់ ឧបករណ៍បំណុលទទួលបានកំឡុងពេ�លកាន់កាប់មុន�ល់ពេ�លកំណត់។

50. Book value = balance sheet value

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Thanks !