Questions from Financial Markets

Q: Suppose the U.S. dollar strengthens in the past year

Suppose the U.S. dollar strengthens in the past year against other currencies. Explain its effect on U.S. dollar revenues and expenses for a global firm headquartered in the U.S.

Q: Describe the meaning of a “state of nature” and explain

Describe the meaning of a “state of nature” and explain how this concept is used to provide expected measures of return and risk.

Q: Explain the historical relationships between return and risk for common stocks versus

Explain the historical relationships between return and risk for common stocks versus corporate bonds.

Q: Explain what is meant by “market efficiency.” What are the

Explain what is meant by “market efficiency.” What are the characteristics of an efficient market?

Q: It has often been said that a business should begin with a

It has often been said that a business should begin with a vision or mission statement. Explain what that means.

Q: 1. Participants on the floor of the New York Stock Exchange

1. Participants on the floor of the New York Stock Exchange do not include which one of the following? a. House brokers b. Registered brokers c. Designated market makers d. Supplemental liquidity pr...

Q: Describe the three different accounts that comprise the owners’ equity section on

Describe the three different accounts that comprise the owners’ equity section on a typical corporate balance sheet.

Q: What is a statement of cash flows? What are the three

What is a statement of cash flows? What are the three standard sections contained in a statement of cash flows?

Q: How can common-size financial statements be used?

How can common-size financial statements be used?

Q: How are industry-operating differences reflected in a firm’s financial statements

How are industry-operating differences reflected in a firm’s financial statements?