Questions from Corporate Finance


Q: A linear probability model you have developed finds there are two factors

A linear probability model you have developed finds there are two factors influencing the past bankruptcy behavior of firms: the debt- to-equity ratio and the profit margin. Based on past bankruptcy e...

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Q: What is the job of the trustee in an informal liquidation of

What is the job of the trustee in an informal liquidation of a firm’s assets?

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Q: What is the difference between a Chapter 11 and a Chapter 7

What is the difference between a Chapter 11 and a Chapter 7 bankruptcy?

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Q: What are the advantages of borrowing money in the country you plan

What are the advantages of borrowing money in the country you plan to invest it in?

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Q: If a Sony television costs $500 in the United States,

If a Sony television costs $500 in the United States, what do you think it should cost in Japan? What are some reasons that your price might not be right?

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Q: What happens to a country’s currency over time when it has a

What happens to a country’s currency over time when it has a high inflation rate? What will that mean for the country’s exports and imports?

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Q: What forces are at work that cause the price of wheat per

What forces are at work that cause the price of wheat per bushel to be the same in most every country of the world?

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Q: You own $25,000 in subordinated debt of Local Crossings

You own $25,000 in subordinated debt of Local Crossings, Inc. which declared bankruptcy on May 15, 2018 through a Chapter 7 filing. Local Crossings’ balance sheet at the time of the bankruptcy filing...

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Q: If the spot exchange rate between the U.S. dollar

If the spot exchange rate between the U.S. dollar and the Singapore dollar is $1 = SG$1.5266 and the 3-month expected exchange rate is $1 = SG$1.5305, then what is the expected inflation relationship...

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Q: Over the past decade, China has acquired hundreds of billions of

Over the past decade, China has acquired hundreds of billions of U.S. dollars because of the trade imbalance between the two countries. They have used many of these dollars to purchase U.S. Treasury b...

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