Questions from Corporate Finance

Q: List some of the commodity futures contracts that are traded on exchanges

List some of the commodity futures contracts that are traded on exchanges. Who do you think could usefully reduce risk by buying each of these contracts? Who do you think might wish to sell each contr...

Q: Which of the following transactions are not likely to be classed as

Which of the following transactions are not likely to be classed as tax-free? a. A cash acquisition of assets. b. A merger in which payment is entirely in the form of voting stock.

Q: What are the government’s motives in a privatization?

What are the government’s motives in a privatization?

Q: List the disadvantages of traditional U.S. conglomerates.

List the disadvantages of traditional U.S. conglomerates.

Q: What is the difference between Chapter 7 and Chapter 11 bankruptcies?

What is the difference between Chapter 7 and Chapter 11 bankruptcies?

Q: Explain why equity can sometimes have a positive value even when companies

Explain why equity can sometimes have a positive value even when companies file for bankruptcy.

Q: For what kinds of firm would an LBO or MBO transaction not

For what kinds of firm would an LBO or MBO transaction not be productive?

Q: We described several problems with Chapter 11 bankruptcy. Which of these

We described several problems with Chapter 11 bankruptcy. Which of these problems could be mitigated by negotiating a prepackaged bankruptcy?

Q: Define the following terms: a. LBO b.

Define the following terms: a. LBO b. MBO c. Spin-off d. Carve-out e. Asset sale f. Privatization g. Leveraged restructuring

Q: Table 26.4 contains spot and six-month futures prices

Table 26.4 contains spot and six-month futures prices for several commodities and financial instruments. There may be some money-making opportunities. See if you can find them, and explain how you wou...