Questions from Corporate Finance


Q: What are the tax implications of a decision to finance a project

What are the tax implications of a decision to finance a project using debt rather than new equity?

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Q: Why is it important to look at a firm’s historical financial statements

Why is it important to look at a firm’s historical financial statements?

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Q: What is the difference between simple interest and compound interest?

What is the difference between simple interest and compound interest?

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Q: What is the present value, and when is it used?

What is the present value, and when is it used?

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Q: What is the discount rate? How does the discount rate differ

What is the discount rate? How does the discount rate differ from the interest rate in the future value equation?

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Q: What is the relation between the present value factor and the future

What is the relation between the present value factor and the future value factor?

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Q: What is the difference between the interest rate (i) and

What is the difference between the interest rate (i) and the growth rate (g) in the future value equation?

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Q: What are the two components of a total holding period return?

What are the two components of a total holding period return?

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Q: How is the expected return on an investment calculated?

How is the expected return on an investment calculated?

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Q: How do large corporations adjust their liquidity in the money markets?

How do large corporations adjust their liquidity in the money markets?

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