Questions from Corporate Finance

Q: What three different models are used to value stocks based on different

What three different models are used to value stocks based on different dividend patterns?

Q: If a firm accepts a project with a $10,000

If a firm accepts a project with a $10,000 NPV, what is the effect on the value of the firm?

Q: Under what circumstances can you use the constant-growth dividend formula

Under what circumstances can you use the constant-growth dividend formula to estimate kcs?

Q: What is the payback period?

What is the payback period?

Q: Why does the payback period provide a measure of a project’s liquidity

Why does the payback period provide a measure of a project’s liquidity risk?

Q: What are the main shortcomings of the payback method?

What are the main shortcomings of the payback method?

Q: Under what circumstances do the NPV and IRR decision rules always yield

Under what circumstances do the NPV and IRR decision rules always yield the same decision?

Q: In capital budgeting, what is a conventional cash flow pattern?

In capital budgeting, what is a conventional cash flow pattern?

Q: What decision criteria should managers use in selecting projects when a firm

What decision criteria should managers use in selecting projects when a firm faces capital constraints?

Q: What types of investments should be included in FCF calculations?

What types of investments should be included in FCF calculations?