Which Financial Economists Are Most Closely Associated with the Financial

question 90

Multiple Choice

Which financial economists are most closely associated with the financial theory of optimal capital structure?

• A) Modigliani and Miller
• B) Fama, Fisher, Jensen, and Roll
• C) Black and Scholes
• D) Markowitz and Sharpe

Determine the cash effects of transactions and events related to investing and financing activities.

Calculate the ending cash balance given the beginning balance and cash flows from operating, investing, and financing activities.

Analyze changes in current assets and current liabilities to adjust net income for non-cash transactions and changes in operating capital.

Understand the components and preparation of the statement of cash flows.