Questions from Financial Management

Q: What are the differences between a call option and a put option

What are the differences between a call option and a put option?

Q: Why is it said that convertible securities have a floor price?

Why is it said that convertible securities have a floor price?

Q: What is meant by a step-up in the conversion price

What is meant by a step-up in the conversion price?

Q: Explain the relationship between a company’s growth possibilities and its dividend policy

Explain the relationship between a company’s growth possibilities and its dividend policy.

Q: Explain the difference between basic earnings per share and diluted earnings per

Explain the difference between basic earnings per share and diluted earnings per share.

Q: Explain why warrants are issued. (Why are they used in

Explain why warrants are issued. (Why are they used in corporate finance?)

Q: Name three industries in which mergers have been prominent.

Name three industries in which mergers have been prominent.

Q: What is a typical merger premium paid in a merger or acquisition

What is a typical merger premium paid in a merger or acquisition? What effect does this premium have on the market value of the merger candidate and when is most of this movement likely to take place?...

Q: Why do management and stockholders often have divergent viewpoints about the desirability

Why do management and stockholders often have divergent viewpoints about the desirability of a takeover?

Q: What is the purpose(s) of the two-step

What is the purpose(s) of the two-step buyout from the viewpoint of the acquiring company?