Questions from Corporate Finance


Q: Is it ethical for large firms to unilaterally lengthen their payables periods

Is it ethical for large firms to unilaterally lengthen their payables periods, particularly when dealing with smaller suppliers?

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Q: One option a firm usually has with any excess cash is to

One option a firm usually has with any excess cash is to pay its suppliers more quickly. What are the advantages and disadvantages of this use of excess cash?

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Q: If you are an exporter who must make payments in foreign currency

If you are an exporter who must make payments in foreign currency three months after receiving each shipment and you predict that the domestic currency will appreciate in value over this period, is th...

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Q: Evaluate the following statement: Managers should not focus on the current

Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.

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Q: In evaluating the Cayenne, would you consider the possible damage to

In evaluating the Cayenne, would you consider the possible damage to Porsche’s reputation as erosion?

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Q: In evaluating the Cayenne, would you consider the possible damage to

In evaluating the Cayenne, would you consider the possible damage to Porsche’s reputation as erosion?

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Q: In the context of capital budgeting, what is an opportunity cost

In the context of capital budgeting, what is an opportunity cost?

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Q: Looking back at the crossover bonds we discussed in the chapter,

Looking back at the crossover bonds we discussed in the chapter, why do you think split ratings such as these occur?

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Q: You own a stock portfolio invested 10 percent in Stock Q ,

You own a stock portfolio invested 10 percent in Stock Q , 35 percent in Stock R , 20 percent in Stock S , and 35 percent in Stock T . The betas for these four stocks are .75, 1.90, 1.38, and 1.16, re...

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Q: Nina Corp. uses no debt. The weighted average cost of

Nina Corp. uses no debt. The weighted average cost of capital is 9 percent. If the current market value of the equity is $37 million and there are no taxes, what is EBIT?

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