Questions from Corporate Finance

Q: Describe the difference between a merger and an acquisition.

Describe the difference between a merger and an acquisition.

Q: Describe the similarities and the differences of exchange rate/cross rate

Describe the similarities and the differences of exchange rate/cross rate arbitrage and spot rate/forwardrate arbitrage.

Q: The Justice Department has been asked to review a merger request for

The Justice Department has been asked to review a merger request for a market with the following four firms. Firm Assets...

Q: Stubborn Motors, Inc. is asking a price of $75

Stubborn Motors, Inc. is asking a price of $75 million to be purchased by Rubber Tire Motor Corp. Stubborn Motors currently has total cash flows of $2 million that are expected to grow by 1 percent an...

Q: Disaster Airlines is a firm in severe financial distress. The firm

Disaster Airlines is a firm in severe financial distress. The firm can no longer pay its bills on time and it is far behind on payments to its banks and long-term debt holders. The firm has decided to...

Q: What is a credit-scoring model?

What is a credit-scoring model?

Q: How does a best efforts underwriting differ from a firm commitment underwriting

How does a best efforts underwriting differ from a firm commitment underwriting? If you operated a company issuing stock for the first time, which type of underwriting would you prefer? Why might you...

Q: How does a competitive sale of corporate bonds differ from a negotiated

How does a competitive sale of corporate bonds differ from a negotiated sale? Which type of underwriting would you prefer? Why might you still choose the alternative?

Q: How does a public offering of debt or equity securities issued by

How does a public offering of debt or equity securities issued by a public firm differ from a private placement?

Q: What are the net proceeds, gross proceeds, and underwriter’s spread

What are the net proceeds, gross proceeds, and underwriter’s spread? How does each affect the funds received by a public firm when debt or equity securities are issued?