Questions from Corporate Finance


Q: What are some of the characteristics of a firm with a long

What are some of the characteristics of a firm with a long cash cycle?

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Q: What options are available to a firm if it believes it has

What options are available to a firm if it believes it has too much cash? How about too little?

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Q: In what form is trade credit most commonly offered? What is

In what form is trade credit most commonly offered? What is the credit instrument in this case?

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Q: The Dybvig Corporation’s common stock has a beta of 1.21

The Dybvig Corporation’s common stock has a beta of 1.21. If the risk-free rate is 3.5 percent and the expected return on the market is 11 percent, what is Dybvig’s cost of equity capital?

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Q: The Paden Corporation has annual sales of $34 million. The

The Paden Corporation has annual sales of $34 million. The average collection period is 33 days. What is the average investment in accounts receivable as shown on the balance sheet?

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Q: What are some benefits of financial distress?

What are some benefits of financial distress?

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Q: Suppose the rate of inflation in Mexico will run about 3 percent

Suppose the rate of inflation in Mexico will run about 3 percent higher than the U.S. inflation rate over the next several years. All other things being the same, what will happen to the Mexican peso...

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Q: Classify the following events as mostly systematic or mostly unsystematic. Is

Classify the following events as mostly systematic or mostly unsystematic. Is the distinction clear in every case? a. Short-term interest rates increase unexpectedly. b. The interest rate a company pa...

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Q: What happens to the future value of an annuity if you increase

What happens to the future value of an annuity if you increase the rate r? What happens to the present value?

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Q: Which has greater interest rate risk, a 30-year Treasury

Which has greater interest rate risk, a 30-year Treasury bond or a 30-year BB corporate bond?

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