Questions from Corporate Finance


Q: Damien knows that the beta of his portfolio is equal to 1

Damien knows that the beta of his portfolio is equal to 1, but he does not know the risk-free rate of return or the market risk premium. He also knows that the expected return on the market is 8 perce...

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Q: Define systematic risk?

Define systematic risk?

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Q: Common-size analysis is used in financial analysis to:

Common-size analysis is used in financial analysis to: a. Evaluate changes in a company’s operating cycle over time. b. Predict changes in a company’s capital structure using regression analysis. c. C...

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Q: Last year ABC companies had accounts receivable turnover of 15, total

Last year ABC companies had accounts receivable turnover of 15, total asset turnover of 4.5, and total assets of $1,000,000. What was the value of ABC’s accounts receivable? What was the value of its...

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Q: What are some of the major external and internal factors that affect

What are some of the major external and internal factors that affect a firm’s stock price? What is the difference between the two general types of factors?

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Q: List the two ways in which a transfer of funds takes place

List the two ways in which a transfer of funds takes place in an economy. What is the main difference between these two?

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Q: DuPont analysis involves breaking return-on-assets ratios into their

DuPont analysis involves breaking return-on-assets ratios into their a. Profit components. b. Marginal and average components. c. Operating and financing components. d. Profit margin and turnover comp...

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Q: Why are direct financial markets also called wholesale markets?

Why are direct financial markets also called wholesale markets?

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Q: Tanner invested $1,000 in large U.S.

Tanner invested $1,000 in large U.S. stocks at the beginning of 2012. This investment earned 15.98 percent in 2012, 32.41 percent in 2013, 13.69 percent in 2014, and 1.41 percent in 2015. What return...

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Q: What is a primary market? What does IPO stand for?

What is a primary market? What does IPO stand for?

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