Questions from Corporate Finance


Q: What are externalities and opportunity costs?

What are externalities and opportunity costs?

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Q: Why do we not deduct interest costs from the cash flows to

Why do we not deduct interest costs from the cash flows to be discounted?

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Q: What goes into a confidentiality agreement and why do people sign them

What goes into a confidentiality agreement and why do people sign them?

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Q: What is due diligence?

What is due diligence?

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Q: In Practice Problem 15, assuming that Nash Business School has an

In Practice Problem 15, assuming that Nash Business School has an effective tax rate of 40 percent, should the shuttle buses be bought or leased?

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Q: What is a shareholder rights plan?

What is a shareholder rights plan?

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Q: What are some standard takeover defences?

What are some standard takeover defences?

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Q: When is it best to mount a hostile bid?

When is it best to mount a hostile bid?

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Q: Why is the payback period a poor evaluation technique?

Why is the payback period a poor evaluation technique?

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Q: What discount rate do we use to determine the NPV of a

What discount rate do we use to determine the NPV of a project and why?

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