Questions from Corporate Finance


Q: What information is needed to use the CAPM to estimate kcs or

What information is needed to use the CAPM to estimate kcs or kps?

See Answer

Q: What is the advantage of using a multistage-growth dividend model

What is the advantage of using a multistage-growth dividend model, rather than the constant-growth dividend model, to estimate kcs?

See Answer

Q: Do analysts use book values or market values to calculate the weights

Do analysts use book values or market values to calculate the weights when they use Equation13.7? Why?

See Answer

Q: What kinds of errors can be made when the WACC for a

What kinds of errors can be made when the WACC for a firm is used as the discount rate for evaluating all projects in the firm?

See Answer

Q: List and define four types of dividends?

List and define four types of dividends?

See Answer

Q: What is a stock repurchase?

What is a stock repurchase?

See Answer

Q: How do stock prices react to dividend announcements?

How do stock prices react to dividend announcements?

See Answer

Q: How does a stock dividend differ from other types of dividends?

How does a stock dividend differ from other types of dividends?

See Answer

Q: How are dividend payouts affected by expected earnings?

How are dividend payouts affected by expected earnings?

See Answer

Q: What else can a business plan be used for?

What else can a business plan be used for?

See Answer