Questions from Corporate Finance


Q: How big of a stock dividend would a firm have to announce

How big of a stock dividend would a firm have to announce for the stock price to be affected as much as it would through a 3-for-1 stock split?

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Q: A firm has estimated the following two month cash budget. What

A firm has estimated the following two month cash budget. What is the cash surplus or deficit for these two months?

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Q: You hold the positions in the table below. What is the

You hold the positions in the table below. What is the beta of your portfolio? If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is the required return of the por...

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Q: A firm has estimated the following two month cash budget. What

A firm has estimated the following two month cash budget. What is the cash surplus or deficit for these two months?

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Q: As owners, what rights and advantages do shareholders obtain?

As owners, what rights and advantages do shareholders obtain?

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Q: The net cash flow for a firm in January, February,

The net cash flow for a firm in January, February, and March are $-2.5 million, $-3.0 million, and $2.4 million. What is the cumulative net cash flow for March?

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Q: The Net Cash Flow for a firm in January, February,

The Net Cash Flow for a firm in January, February, and March are $3.5 million, $-1.0 million, and $1.4 million. What is the Cumulative Net Cash Flow for March?

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Q: The Hug’a’Bear company makes its teddy bears the month before they are

The Hug’a’Bear company makes its teddy bears the month before they are sold. If sales of $2.5 million are expected in November and the firm pays 50 percent of sales in material costs, then what is the...

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Q: The Snow Adventures Company makes its snowboards the month before they are

The Snow Adventures Company makes its snowboards the month before they are sold. If sales of $7.8 million are expected in November and the firm pays 65 percent of sales in material costs, then what is...

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Q: Consider a company that has sales in May, June, and

Consider a company that has sales in May, June, and July of $10 million, $12 million, and $9 million, respectively. The firm is paid by 35 percent of its customers in the month of the sale, 40 perce...

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