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 include what long-term investments the firm should choose, where the firm will get long-term financing, what mixture of debt and equity the firm should use, and how the firm should manage its working capital. At what rate of interest a firm should borrow is not considered one of the basic questions of corporate finance.

Which of the Following Is NOT Considered One of the Basic