Questions from Corporate Finance

Q: Expedic Utility Corp. needs to increase its electricity production capacity.

Expedic Utility Corp. needs to increase its electricity production capacity. It is interested in a slightly used reactor located in Ontario. It has been offered two alternatives: buy the reactor for $...

Q: Explain how to create a risk-free portfolio from the stock

Explain how to create a risk-free portfolio from the stock and the option’s payoff.

Q: What are risk-neutral probabilities?

What are risk-neutral probabilities?

Q: Briefly describe operating LCs, revolving LCs, and term loans.

Briefly describe operating LCs, revolving LCs, and term loans.

Q: What are the cash flow from operations and the free cash flow

What are the cash flow from operations and the free cash flow implications of an operating versus a financial lease?

Q: Charles Zhang, the owner of a small moving company, has

Charles Zhang, the owner of a small moving company, has decided that economic conditions are perfect for him to expand his business. Such an expansion will require him to buy five new moving trucks at...

Q: Briefly explain “the Greeks” (delta, theta, Vega

Briefly explain “the Greeks” (delta, theta, Vega, and rho) in option pricing.

Q: How and why do we adjust the discount rate for multi-

How and why do we adjust the discount rate for multi-divisional firms?

Q: What mistakes can occur if firms do not make the appropriate adjustments

What mistakes can occur if firms do not make the appropriate adjustments?

Q: List and briefly describe the two types of takeovers.

List and briefly describe the two types of takeovers.