Questions from Corporate Finance

Q: Fled Flightstone Mining’s management does not like to pay cash dividends due

Fled Flightstone Mining’s management does not like to pay cash dividends due to the volatility of the company’s cash flows. Fled management has found, however, that when it does not pay dividends, its...

Q: Given that many new businesses fail in the first few years after

Given that many new businesses fail in the first few years after they are established, how should an entrepreneur think about the risk of failure associated with a new business? From what you have lea...

Q: Explain why it is difficult to value a young, rapidly growing

Explain why it is difficult to value a young, rapidly growing company?

Q: What are the five steps used in NPV analysis?

What are the five steps used in NPV analysis?

Q: Explain how the taxation of a C-corporation differs from the

Explain how the taxation of a C-corporation differs from the taxation of the other forms of business organization discussed in this chapter?

Q: What is a business plan? Explain how a business plan can

What is a business plan? Explain how a business plan can help an entrepreneur succeed in building a business?

Q: You are entering negotiations to purchase a business and are trying to

You are entering negotiations to purchase a business and are trying to formulate a negotiating strategy. You want to determine the minimum price you should offer and the maximum you should be willing...

Q: You have just received a business valuation report that is dated six

You have just received a business valuation report that is dated six months ago. Describe the factors that might have changed during the past six months and, therefore, caused the value of the busines...

Q: Is the replacement cost of a business generally related to the value

Is the replacement cost of a business generally related to the value of the cash flows that the business is expected to produce in the future? Why or why not? Illustrate your answer with an example?

Q: You want to estimate the value of a company that has three

You want to estimate the value of a company that has three very different lines of business. It manufactures aircraft, is in the data-processing business, and manufactures automobiles. How could you u...