Questions from Corporate Finance


Q: The industry average receivables collection period: a. Increased from

The industry average receivables collection period: a. Increased from 2016 to 2017. b. Decreased from 2016 to 2017. c. Did not change from 2016 to 2017. d. Increased along with the increase in the ind...

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Q: Northwood, Inc., has revenue of $455,316,

Northwood, Inc., has revenue of $455,316, costs of $316,487, and a tax rate of 31 percent. If the firm pays out 45 percent of its earnings as dividends every year, how much earnings are retained and w...

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Q: Cattail Corporation’s financial statements for the fiscal year just ended are shown

Cattail Corporation’s financial statements for the fiscal year just ended are shown below: Cattail management expects sales to increase by 14 percent next year. Assume that the fin...

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Q: What are bankruptcy costs, and what are the two types of

What are bankruptcy costs, and what are the two types of bankruptcy costs?

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Q: Is it always possible to estimate the value of a real option

Is it always possible to estimate the value of a real option? Why or why not?

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Q: What is an option?

What is an option?

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Q: Suppose you have an option to buy a share of ABC Corp

Suppose you have an option to buy a share of ABC Corp. stock for $100. The option expires tomorrow, and the current price of ABC Corp. is $95. How much is your option worth?

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Q: NetSpeed Technologies is a telecom component manufacturer. The firm typically has

NetSpeed Technologies is a telecom component manufacturer. The firm typically has a collection period of 44 days and days’ sales in inventory of 29 days. What is the operating cycle for NetSpeed?

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Q: You hold an American option to sell one share of Zyther Co

You hold an American option to sell one share of Zyther Co. stock. The option expires tomorrow. The strike price of the option is $50, and the current stock price is $49. What is the value of exercisi...

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Q: What is the difference between a financial option and a real option

What is the difference between a financial option and a real option?

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