Questions from Corporate Finance

Q: If the market is strong-form efficient, then trading on

If the market is strong-form efficient, then trading on tips you hear from Jim Cramer (the host of Mad Money on CNBC) will generate no excess returns (i.e., returns in excess of fair compensation for...

Q: Fraser Corporation has announced that its net income for the year ended

Fraser Corporation has announced that its net income for the year ended June 30, 2017, was $1,353,412. The company had EBITDA of $ 4,967,855, and its depreciation and amortization expense was equal to...

Q: For its most recent fiscal year, Carmichael Hobby Shop recorded EBITDA

For its most recent fiscal year, Carmichael Hobby Shop recorded EBITDA of $512,725.20, EBIT of $362,450.20, zero interest expense, and cash flow to investors from operating activity of $348,461.25. A...

Q: What is the real rate of interest, and how is it

What is the real rate of interest, and how is it determined?

Q: How does the nominal rate of interest vary over time?

How does the nominal rate of interest vary over time?

Q: What is the Fisher equation, and how is it used?

What is the Fisher equation, and how is it used?

Q: During the period from 2011 through 2015 the annual returns on small

During the period from 2011 through 2015 the annual returns on small U.S. stocks were -3.26 percent, 18.23 percent, 45.07 percent, 2.92 percent, and -3.60 percent, respectively. What would a $1 inves...

Q: Imagine you borrow $500 from your roommate, agreeing to pay

Imagine you borrow $500 from your roommate, agreeing to pay her back $500 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.25 percent. Wh...

Q: Your parents have given you $1,000 a year before

Your parents have given you $1,000 a year before your graduation so that you can take a trip when you graduate. You wisely decide to invest the money in a bank CD that pays 6.75 percent interest. You...

Q: Menomonie Casino Company earned $23,458,933 before interest

Menomonie Casino Company earned $23,458,933 before interest and taxes for the fiscal year ending March 31, 2017. If the casino had interest expenses of $1,645,123, calculate its tax obligation using E...