Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Match each news item in the left column with the corresponding corporate finance

ID: 2819114 • Letter: M

Question

Match each news item in the left column with the corresponding corporate finance decision category in the right column China will continue its efforts to reduce the corporate leverage ratio this year to effectively control macro leverage and rein in financial risks, the top economic planner said Wednesday Capital Structure Daniel Loeb's hedge fund laucedCorporate Control a proxy fight to replace Campbell Soup's entire board after it was underwhelmed by the company's plan to sell two business units Samsung Group said it will invest about $22 billion over the next three artificial intelligence and 5G technology Capital Budgeting years in growth areas such as Bike and baby gear manufacturer Dorel Industries Inc. is jumping into retailing with the purchase of a controlling stake in Silfa, a group of companies that owns South America's most popular infant product brand Corporate Governance

Explanation / Answer

A. Capital structure is the correct option. Capital structure means how to use debt and equity or hybrid securities to finance its operations and growth and these affects financial leverage ratios. Hence in this situation china is focusing on capital structure.

B. Corporate governance is the correct option. As it is using tools to change boards against inappropriate action of selling its two business unit.

C. Capital budgeting is the correct option. As it says where to utilize its fund

D. Corporate control is the correct option. As here strategy is to take a controlling stake in the business where they are planning to enter.