Questions from Corporate Finance


Q: Answer the following; a. What is an equity

Answer the following; a. What is an equity risk premium? b. What is the difference between calculating an equity risk premium using arithmetic returns compared to using geometric returns? c. In Exhi...

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Q: What is the central problem involved in consolidating the financial statements of

What is the central problem involved in consolidating the financial statements of a foreign subsidiary?

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Q: Apart from improving liquidity and escaping from a segmented home market,

Apart from improving liquidity and escaping from a segmented home market, why might emerging market MNEs further lower their cost of capital by listing and selling equity abroad?

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Q: Define what is meant by a “Euroequity public share issue.”

Define what is meant by a “Euroequity public share issue.”

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Q: Answer the following questions: a. What is SEC Rule

Answer the following questions: a. What is SEC Rule 144A? b. Why might a foreign firm choose to sell its equity in the United States under SEC Rule 144A?

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Q: a. What is a private equity fund? b.

a. What is a private equity fund? b. How do they differ from traditional venture capital firms? c. How do private equity funds raise their own capital, and how does this action give them a competitive...

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Q: What, in simple wording, is the objective sought by finding

What, in simple wording, is the objective sought by finding an optimal capital structure?

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Q: Answer the following questions: a. What is the “

Answer the following questions: a. What is the “cost of debt” and how is it determined? b. What is the “cost of equity” and how is it determined?

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Q: As debt in a firm’s capital structure is increased from no debt

As debt in a firm’s capital structure is increased from no debt to a significant proportion of debt (say, 60%), what tends to happen to the cost of debt, to the cost of equity, and to the overall weig...

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Q: How does the availability of capital influence the theory of optimal capital

How does the availability of capital influence the theory of optimal capital structure for a multinational enterprise?

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