Questions from Corporate Finance

Q: Suppose a company in which you own stock has attracted two take

Suppose a company in which you own stock has attracted two take over offers. Would it ever make sense for your company’s management to favor the lower offer? Does the form of payment affect your answe...

Q: We discussed five international capital market relationships: Relative PPP, IRP

We discussed five international capital market relationships: Relative PPP, IRP, UFR, UIP, and the international Fisher effect. Which of these would you expect to hold most closely? Which do you think...

Q: Is it unfair or unethical for corporations to create classes of stock

Is it unfair or unethical for corporations to create classes of stock with unequal voting rights?

Q: Suppose that when TMCC offered the security for $24,099

Suppose that when TMCC offered the security for $24,099 the U.S. Treasury had offered an essentially identical security. Do you think it would have had a higher or lower price? Why?

Q: What is the difference between the term structure of interest rates and

What is the difference between the term structure of interest rates and the yield curve?

Q: Suppose the interest rate on T-bills suddenly and unexpectedly rises

Suppose the interest rate on T-bills suddenly and unexpectedly rises. All other things being the same, what is the impact on call option values? On put option values?

Q: Could a company’s cash flow to stockholders be negative in a given

Could a company’s cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?

Q: What is wrong with measuring the performance of a U.S

What is wrong with measuring the performance of a U.S. growth stock manager against a benchmark composed of British stocks?

Q: What is the difference between internal financing and external financing?

What is the difference between internal financing and external financing?

Q: What is the basic goal of financial management with regard to capital

What is the basic goal of financial management with regard to capital structure?