Questions from Corporate Finance


Q: This is your second interview with a prestigious brokerage firm for a

This is your second interview with a prestigious brokerage firm for a job as an equity analyst. You survived the morning interviews with the department manager and the Vice President of Equity. Everyt...

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Q: You work in Walt Disney Company’s corporate finance and treasury department and

You work in Walt Disney Company’s corporate finance and treasury department and have just been assigned to the team estimating Disney’s WACC. You must estimate this WACC in preparation for a team meet...

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Q: See Table 2.5 showing financial statement data and stock price

See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydeco’s PE ratio each year from 2015 to 2019. In which year was it the highest? b. Wh...

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Q: In early 2018, United Airlines (UAL) had a market

In early 2018, United Airlines (UAL) had a market capitalization of $20.2 billion, debt of $14.4 billion, and cash of $3.8 billion. United also had annual revenues of $37.7 billion. Southwest Airlines...

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Q: See Table 2.5 showing financial statement data and stock price

See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydeco’s ROE each year from 2015 to 2019. b. Compute Mydeco’s ROA ea...

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Q: In Problem 20, assume the risk-free rate is 3

In Problem 20, assume the risk-free rate is 3% and the market risk premium is 7%. a. What does the CAPM predict the expected return for each stock should be? b. Clearly, the CAPM predictions are not e...

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Q: In Problem 20, assume the risk-free rate is 3

In Problem 20, assume the risk-free rate is 3% and the market risk premium is 7%. a. What does the CAPM predict the expected return for each stock should be? b. Clearly, the CAPM predictions are not e...

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Q: In Problem 20, assume the risk-free rate is 3

In Problem 20, assume the risk-free rate is 3% and the market risk premium is 7%. a. What does the CAPM predict the expected return for each stock should be? b. Clearly, the CAPM predictions are not e...

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Q: In early 2018 Qualcomm Inc. had $21 billion in debt

In early 2018 Qualcomm Inc. had $21 billion in debt, total equity capitalization of $78 billion, and an equity beta of 1.49 (as reported on Yahoo! Finance). Included in Qualcomm’s assets was $37 billi...

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Q: Find online the annual 10-K report for Costco Wholesale Corporation

Find online the annual 10-K report for Costco Wholesale Corporation (COST) for fiscal year 2017 (filed in October 2017). a. Which auditing firm certified these financial statements? b. Which officers...

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