Questions from Corporate Finance


Q: What are the characteristics of a public bond? (Think in

What are the characteristics of a public bond? (Think in terms of comparing it to private placement and bank term loans.)

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Q: How can capital structure decisions affect the control of a firm?

How can capital structure decisions affect the control of a firm?

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Q: Discuss the advantages of shelf registration. What kinds of securities are

Discuss the advantages of shelf registration. What kinds of securities are most likely to be registered this way?

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Q: Identify whether each of the following factors implies a lower or higher

Identify whether each of the following factors implies a lower or higher price for a bond? a. Low marketability of the security. b. Short term to maturity. c. Low credit rating of the issuer. d. No ca...

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Q: What is financial planning? What four types of plans/budgets

What is financial planning? What four types of plans/budgets are involved in financial planning?

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Q: What is the sustainable growth rate? Why is it important?

What is the sustainable growth rate? Why is it important?

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Q: Explain how sales can be used to develop pro forma financial statements

Explain how sales can be used to develop pro forma financial statements?

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Q: Why is sales not always a good measure to use in forecasting

Why is sales not always a good measure to use in forecasting fixed assets?

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Q: Explain why the fixed asset account may or may not vary with

Explain why the fixed asset account may or may not vary with sales?

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Q: How does the dividend payout ratio affect the amount of funds needed

How does the dividend payout ratio affect the amount of funds needed to finance growth?

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