Questions from Corporate Finance


Q: Consider the following annual returns of Estee Lauder and Lowe’s Companies:

Consider the following annual returns of Estee Lauder and Lowe’s Companies: Compute each stock’s average return, standard deviation, and coefficient of variation. W...

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Q: Consider the following annual returns of Molson Coors and International Paper:

Consider the following annual returns of Molson Coors and International Paper: Compute each stock’s average return, standard deviation, and coefficient of variation. Which stock appe...

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Q: Why might firms prefer to conduct stock repurchases through open-market

Why might firms prefer to conduct stock repurchases through open-market operations rather than through fixed-price tender offers?

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Q: GTB, Inc., has a 34 percent tax rate and has

GTB, Inc., has a 34 percent tax rate and has $100 million in assets, currently financed entirely with equity. Equity is worth $7 per share, and book value of equity is equal to market value of equity....

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Q: Below are the monthly returns for March 2011 to February 2016 of

Below are the monthly returns for March 2011 to February 2016 of three international stock indices; All Ordinaries of Australia, Nikkei 225 of Japan, and FTSE 100 of England. A. Compute and compare e...

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Q: You have $20,000 to invest. You want to

You have $20,000 to invest. You want to purchase shares of Xerox at $17.34, Qwest at $8.15, and Liz Claiborne at $44.73. How many shares of each company should you purchase so that your portfolio cons...

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Q: FedEx Corp stock ended the previous year at $103.39

FedEx Corp stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend last year. It ended last year at $106.69. If you owned 200 shares of FedEx, what was your dollar retur...

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Q: Sprint Nextel Corp stock ended the previous year at $23.

Sprint Nextel Corp stock ended the previous year at $23.36 per share. It paid a $2.37 per share dividend last year. It ended last year at $18.89. If you owned 500 shares of Sprint, what was your doll...

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Q: A corporate bond that you own at the beginning of the year

A corporate bond that you own at the beginning of the year is worth $975. During the year, it pays $35 in interest payments and ends the year valued at $965. What was your dollar return and percent re...

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Q: A Treasury bond that you own at the beginning of the year

A Treasury bond that you own at the beginning of the year is worth $1,055. During the year, it pays $35 in interest payments and ends the year valued at $1,065. What was your dollar return and percent...

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