Questions from Corporate Finance


Q: What are the main types of political risks that are global in

What are the main types of political risks that are global in origin?

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Q: Diagram the life span of an exposure arising from selling a product

Diagram the life span of an exposure arising from selling a product on open account. On the diagram define and show quotation, backlog, and billing exposures.

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Q: Given that eGain Communications was up by almost 412 percent for 2011

Given that eGain Communications was up by almost 412 percent for 2011, why didn’t all investors hold eGain Communications?

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Q: Define financial distress using the stock-based and flow-based

Define financial distress using the stock-based and flow-based approaches.

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Q: Companies pay rating agencies such as Moody’s and S&P to

Companies pay rating agencies such as Moody’s and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so...

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Q: True or false: The unsystematic risk of a share of stock

True or false: The unsystematic risk of a share of stock is irrelevant for valuing the stock because it can be diversified away; therefore, it is also irrelevant for valuing a call option on the stock...

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Q: Why is it not necessarily bad for the operating cash flow to

Why is it not necessarily bad for the operating cash flow to be negative for a particular period?

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Q: How can the return on a portfolio be expressed in terms of

How can the return on a portfolio be expressed in terms of a factor model?

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Q: Critically evaluate the following statements: Playing the stock market is like

Critically evaluate the following statements: Playing the stock market is like gambling. Such speculative investing has no social value other than the pleasure people get from this form of gambling.

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Q: Why is the use of debt financing referred to as financial “

Why is the use of debt financing referred to as financial “leverage”?

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