Questions from Corporate Finance


Q: You have just received a windfall from an investment you made in

You have just received a windfall from an investment you made in a friend’s business. She will be paying you $10,000 at the end of this year, $20,000 at the end of the following year, and $30,000 at t...

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Q: Peripatetic Enterprises, a U.S. import-export trading

Peripatetic Enterprises, a U.S. import-export trading firm, is considering its international tax situation. Tax law in the Unites States requires U.S. corporations to pay taxes on their foreign earnin...

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Q: Suppose the interest on Russian government bonds is 7.5%,

Suppose the interest on Russian government bonds is 7.5%, and the current exchange rate is 28 rubles per dollar. If the forward exchange rate is 28.5 rubles per dollar, and the current U.S. risk-free...

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Q: What are some of the differences between the NYSE and NASDAQ?

What are some of the differences between the NYSE and NASDAQ?

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Q: You are a shareholder in a C corporation. The corporation earns

You are a shareholder in a C corporation. The corporation earns $2.00 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. Assume the corpor...

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Q: What is the financial cycle?

What is the financial cycle?

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Q: Dorpac Corporation has a dividend yield of 1.5%. Its

Dorpac Corporation has a dividend yield of 1.5%. Its equity cost of capital is 8%, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of Dorpac’s dividends?...

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Q: How do financial institutions help with risk-bearing?

How do financial institutions help with risk-bearing?

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Q: Think back to the last time you ate at an expensive restaurant

Think back to the last time you ate at an expensive restaurant where you paid the bill. Now think about the last time you ate at a similar restaurant, but your parents paid the bill. Did you order mor...

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Q: What are some of the similarities and differences among mutual funds,

What are some of the similarities and differences among mutual funds, pension funds, and hedge funds?

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