Questions from Corporate Finance


Q: The March 11, 2004, issue of Businessweek magazine reported that

The March 11, 2004, issue of Businessweek magazine reported that Standard & Poor’s had reduced Sun Microsystem’s debt rating to junk status. Over the course of the next two days, Sun’s stock price fel...

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Q: An episode of the BBC program Horizons featured the following experiment.

An episode of the BBC program Horizons featured the following experiment. A researcher in a park with a lot of pedestrians invited passersby to examine an unopened bottle of wine, which the researcher...

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Q: Consider the responses to a survey conducted of geologists working in the

Consider the responses to a survey conducted of geologists working in the mining industry.46 The survey put the following question to the geologists: “If an economic deposit was discovered tomorrow, h...

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Q: On April 23, 2003, The Wall Street Journal published an

On April 23, 2003, The Wall Street Journal published an article suggesting that the analysts following eBay were excessively optimistic about eBay’s future revenue stream. The article pointed out that...

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Q: In the chapter discussion of the merger between HP and Compaq,

In the chapter discussion of the merger between HP and Compaq, HP director Sam Ginn initially voiced doubts about the deal. However, the McKinsey experts retorted that even a slim profit in PCs would...

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Q: HP director Patricia Dunn works in the banking industry, where consolidation

HP director Patricia Dunn works in the banking industry, where consolidation mergers have worked out well in the long run but are vulnerable in the first two years. She responded positively to the McK...

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Q: Consider a statement that begins, “I see myself as someone

Consider a statement that begins, “I see myself as someone who” Below are five phrases that might conclude this statement. Associate exactly one of the big five psychological characteristics to each p...

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Q: In the spring of 2003, analysts at Prudential established a target

In the spring of 2003, analysts at Prudential established a target price for eBay, justifying the P/E values in their analysis by appeal to PEG. Their report stated that their assumptions of a P/E of...

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Q: Answer the following six sub questions: 7.1.

Answer the following six sub questions: 7.1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in your acco...

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Q: The Times article notes that three days after the ACP awarded a

The Times article notes that three days after the ACP awarded a $158 million contract to the Spanish firm that manufactures the tugboats, the son of the canal administrator joined the law firm represe...

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