Questions from Corporate Finance

Q: The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed

The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed $510,000 in the common stock account and $3.6 million in the additional paid-in surplus account. The 2015 balance sheet showed $545,000 and $...

Q: Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor

Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor Corporation, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, TMCC promised to repay...

Q: Could a company’s cash flow to stockholders be negative in a given

Could a company’s cash flow to stockholders be negative in a given year? (Hint: Yes.) Explain how this might come about. What about cash flow to creditors?

Q: True or false: All assets are liquid at some price.

True or false: All assets are liquid at some price. Explain.

Q: Critics have charged that compensation to top managers in the United States

Critics have charged that compensation to top managers in the United States is simply too high and should be cut back. For example, focusing on large corporations, Larry Ellison of Oracle has been one...

Q: Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor

Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor Corporation, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, TMCC promised to repay...

Q: A ratio that is becoming more widely used is return on investment

A ratio that is becoming more widely used is return on investment. Return on investment is calculated as net income divided by long- term liabilities plus equity. What do you think return on investmen...

Q: The Wintergrass Company has an ROE of 11.4 percent and

The Wintergrass Company has an ROE of 11.4 percent and a payout ratio of 25 percent. a. What is the company’s sustainable growth rate? b. Can the company’s actual growth rate be different from its sus...

Q: Compute the future value of $1,900 continuously compounded for

Compute the future value of $1,900 continuously compounded for a. 9 years at an APR of 12 percent. b. 5 years at an APR of 8 percent. c. 17 years at an APR of 5 percent. d. 10 years at an APR of 9 per...

Q: Given the information for Jordan’s Golf Shop, Inc., in the

Given the information for Jordan’s Golf Shop, Inc., in the previous two problems, suppose you also know that the firm’s net capital spending for 2015 was $975,000 and that the firm reduced its net wor...