Questions from Corporate Finance

Q: What changes have taken place in the capital budgeting techniques used by

What changes have taken place in the capital budgeting techniques used by U.S. companies?

Q: At the end of 2016 the value of the S&P

At the end of 2016 the value of the S&P 500 Index divided by the estimated 2016 earnings for S&P 500 firms (the S&P 500 P/E multiple) was 25.54. Assume that the long-term Treasury bond yield was 2.88...

Q: Explain how financial liabilities differ among different forms of business organization?

Explain how financial liabilities differ among different forms of business organization?

Q: The S&P 500 P/E multiple of 25.

The S&P 500 P/E multiple of 25.54 at the end of 2016 was higher than its historical average of approximately 15. Some financial commentators argued that this meant that the firms in the S&P 500 were,...

Q: You own a company that produces and distributes course packets for classes

You own a company that produces and distributes course packets for classes at local universities via the Internet. You have asked a friend to invest $35,000 in the business. Your friend wants to know...

Q: List two useful tools to help an entrepreneur to understand the cash

List two useful tools to help an entrepreneur to understand the cash requirements of a business and to estimate the financing needs of his or her business?

Q: You believe you have a great business idea and want to start

You believe you have a great business idea and want to start your own company. However, you do not have enough savings to finance it. Where can you get the additional funds you need?

Q: Why is it especially difficult for an entrepreneur with a new business

Why is it especially difficult for an entrepreneur with a new business to raise capital? What tool can help him or her to raise external capital?

Q: It is April 4, 2018, and your company is considering

It is April 4, 2018, and your company is considering the possibility of purchasing the Chrysler automobile manufacturing business. Managers of Fiat Chrysler Automobiles N.V, the automobile manufacture...

Q: Why is excess cash a nonoperating asset (NOA)? Why does

Why is excess cash a nonoperating asset (NOA)? Why does it make sense to add the value of excess cash to the value of the discounted cash flows when we use the WACC or FCFE approach to value a busines...