Questions from Corporate Finance

Q: True/ false? a. Direct holdings of equity by

True/ false? a. Direct holdings of equity by households are larger in Japan than in the United States. b. Bank financing of corporations is relatively important in Japan and continental Europe. c. Int...

Q: What is a keiretsu? Give a brief description. What are

What is a keiretsu? Give a brief description. What are some of their advantages and disadvantages?

Q: Generally in most Anglo-Saxon economies, managers have an obligation

Generally in most Anglo-Saxon economies, managers have an obligation to act in the interests of shareholders. In other countries, they may have wider obligations to society as a whole. What are the pr...

Q: “The strong form of the efficient-market hypothesis is nonsense

“The strong form of the efficient-market hypothesis is nonsense. Look at mutual fund X; it has had superior performance for each of the last 10 years.” Does the speaker have a point? Suppose that ther...

Q: True/false? a. In China, networks of

True/false? a. In China, networks of companies are known as keiretsus. b. Dual-class equity prevents any one group of shareholders from maintaining control. c. Large firms in Germany have two boards o...

Q: It is suggested that family control allows the firm to focus on

It is suggested that family control allows the firm to focus on the long-term interests of the firm. What do you think are the offsetting disadvantages of family ownership?

Q: Do large block holders increase company value? Does your answer depend

Do large block holders increase company value? Does your answer depend on the structure of the financial system?

Q: Old Time Savings Bank pays 4% interest on its savings account

Old Time Savings Bank pays 4% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you...

Q: a. The cost of a new automobile is $10,

a. The cost of a new automobile is $10,000. If the interest rate is 5%, how much would you have to set aside now to provide this sum in five years? b. You have to pay $12,000 a year in school fees at...

Q: You are contemplating membership in the St. Swithin’s and Ancient Golf

You are contemplating membership in the St. Swithin’s and Ancient Golf Club. The annual membership fee for the coming year is $5,000, but you can make a single payment today of $12,750, which will pro...