Questions from Corporate Finance

Q: Explain why firms prefer to use accelerated depreciation methods over the straight

Explain why firms prefer to use accelerated depreciation methods over the straight-line method for tax purposes?

Q: What is the statement of cash flows, and what is its

What is the statement of cash flows, and what is its role?

Q: You are concerned about one of the investments in your fully diversified

You are concerned about one of the investments in your fully diversified portfolio. You just have an uneasy feeling about the CFO, Iam Shifty, of that particular firm. You do believe, however, that th...

Q: In recent years, investors have agreed that the market portfolio consists

In recent years, investors have agreed that the market portfolio consists of more than just a group of U.S. stocks and bonds. If you are an investor who invests in only U.S. stocks and bonds, describe...

Q: What are the two basic sources of funds for all businesses?

What are the two basic sources of funds for all businesses?

Q: Who are the owners in a corporation, and how is their

Who are the owners in a corporation, and how is their ownership represented?

Q: Explain what is meant by stockholders’ limited liability?

Explain what is meant by stockholders’ limited liability?

Q: What is double taxation?

What is double taxation?

Q: What is the form of business organization taken by most large companies

What is the form of business organization taken by most large companies and why?

Q: An investor holds a 10-year bond paying a coupon rate

An investor holds a 10-year bond paying a coupon rate of 9 percent. The yield to maturity of the bond is 7.8 percent. Would you expect the investor to be holding a par-value, premium, or discount bond...