Questions from Corporate Finance


Q: Explain what the marketability of a security is and how it is

Explain what the marketability of a security is and how it is determined?

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Q: What are over-the-counter markets (OTCs), and

What are over-the-counter markets (OTCs), and how do they differ from organized exchanges?

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Q: The going concern assumption of GAAP implies that the firm:

The going concern assumption of GAAP implies that the firm: a. Is going under and needs to be liquidated at historical cost. b. Will continue to operate and its assets should be recorded at historical...

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Q: How does the business cycle affect the nominal interest rate and inflation

How does the business cycle affect the nominal interest rate and inflation rate?

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Q: CSB, Inc., has a beta of 1.35.

CSB, Inc., has a beta of 1.35. If the expected market return is 14.5 percent and the risk-free rate is 5.5 percent, what is the appropriate required return of CSB (using the CAPM)?

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Q: How would one explain a low receivables turnover ratio?

How would one explain a low receivables turnover ratio?

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Q: Define interest rate risk. How can the CFOs manage this risk

Define interest rate risk. How can the CFOs manage this risk?

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Q: Why is ROE generally much higher than ROA for banks relative to

Why is ROE generally much higher than ROA for banks relative to other industries?

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Q: What are the two factors to be considered in time value of

What are the two factors to be considered in time value of money?

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Q: Explain the difference between future value and present value?

Explain the difference between future value and present value?

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