Questions from Corporate Finance


Q: Define capital intensity ratio, and explain its significance?

Define capital intensity ratio, and explain its significance?

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Q: What are the limits on the value of a call option prior

What are the limits on the value of a call option prior to its expiration date?

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Q: What are some viable exit strategies for investors in a start-

What are some viable exit strategies for investors in a start-up company?

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Q: Tantrix Confectioners has total assets of $3,257,845

Tantrix Confectioners has total assets of $3,257,845 and net sales of $5,123,951. What is the firm’s capital intensity ratio?

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Q: McDonald Metal Works has been able to generate net sales of $

McDonald Metal Works has been able to generate net sales of $13,445,196 on assets of $9,145,633. What is the firm’s capital intensity ratio?

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Q: If Newell Corp. has a ROE of 13.7 percent

If Newell Corp. has a ROE of 13.7 percent and a dividend payout ratio of 32 percent, what is its sustainable growth rate?

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Q: Identify two industries (other than airlines) that are capital intensive

Identify two industries (other than airlines) that are capital intensive. Using online or other data sources, compute the capital intensity ratio for the largest firm in each of the chosen industries?...

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Q: Consider two companies that operate in the same line of business and

Consider two companies that operate in the same line of business and have the same degree of operating leverage: the Basic Company and the Grundlegend Company. The Basic Company has no debt in its cap...

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Q: According to the pecking order theory: a. New debt

According to the pecking order theory: a. New debt is preferable to new equity. b. New equity is preferable to internally generated funds. c. New debt is preferable to internally generated funds. d. N...

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Q: A firm sells $100,000 of its accounts receivable to

A firm sells $100,000 of its accounts receivable to factors at a 2 percent discount. The firm’s average collection period is one month. What is the dollar cost of the factoring service?

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