Which of the following is NOT considered one of the basic questions of corporate finance?
A) What long-term investments should the firm choose?
B) At what rate of interest should a firm borrow?
C) Where will the firm get the long-term financing to pay for its investments?
D) What mixture of debt and equity should the firm use to fund its operations?
E) How should the firm manage its working capital, i.e., its everyday financial activities?

Question

Quizplus · Accepted Answer

The basic questions of corporate finance typically include decisions on long-term investments, financing those investments, and managing everyday financial activities. The rate of interest at which a firm should borrow is more related to the conditions of the financial markets and the firm's creditworthiness rather than a fundamental question of corporate finance strategy.

Which of the Following Is NOT Considered One of the Basic