Questions from Corporate Finance

Q: Describe the three most prominent bond rating systems?

Describe the three most prominent bond rating systems?

Q: What are the key factors that most affect the level and shape

What are the key factors that most affect the level and shape of the yield curve?

Q: What are default risk premiums, and what do they measure?

What are default risk premiums, and what do they measure?

Q: Economic units that need to borrow money are said to be:

Economic units that need to borrow money are said to be: a. Lender–savers b. Borrower–spenders c. Balanced budget keepers. d. None of the above.

Q: What is the appropriate decision criterion for financial managers to use when

What is the appropriate decision criterion for financial managers to use when selecting a capital project?

Q: Define yield to maturity. Why is it important?

Define yield to maturity. Why is it important?

Q: What are some of the things that managers do to manage a

What are some of the things that managers do to manage a firm’s working capital?

Q: Which one of the following characteristics does not pertain to corporations?

Which one of the following characteristics does not pertain to corporations? a. Can enter into contracts. b. Can borrow money. c. Are the easiest type of business to form. d. Can be sued. e. Can own...

Q: What are typically the main components of an executive compensation package?

What are typically the main components of an executive compensation package?

Q: Depreciation and amortization expenses are: a. Part of current

Depreciation and amortization expenses are: a. Part of current assets on the balance sheet. b. After-tax expenses that reduce a firm’s cash flows. c. Long-term liabilities that reduce a firm’s net wor...