Questions from Financial Markets

Q: 1. What are typical titles for a firm's top financial officers

1. What are typical titles for a firm's top financial officers? a. Corporate financial officer, treasurer, controlling manager b. Chief financial officer, payroll, controller c. Controlling manager...

Q: Describe how a firm’s business risk can be measured and indicate how

Describe how a firm’s business risk can be measured and indicate how operating leverage impacts on business risk.

Q: Explain why determining a firm’s optimum debt/equity mix is important

Explain why determining a firm’s optimum debt/equity mix is important.

Q: How is financial leverage created? Describe how the degree of financial

How is financial leverage created? Describe how the degree of financial leverage is calculated.

Q: Briefly explain the concepts of business risk, operating leverage, and

Briefly explain the concepts of business risk, operating leverage, and financial leverage in terms of an income statement.

Q: How might the following influences affect a firm’s business risk (consider

How might the following influences affect a firm’s business risk (consider each separately)? a. Imports increase the level of competition b. Labor costs decline c. Health care costs (provided for all...

Q: What is meant by the statement that depreciation provides a tax shield

What is meant by the statement that depreciation provides a tax shield? Explain how this works.

Q: How might the following influences affect a firm’s financial risk (consider

How might the following influences affect a firm’s financial risk (consider each separately)? a. Interest rates on the firm’s short-term bank loans are reduced b. The firm refinances a mortgage on one...

Q: What is meant by the degree of combined leverage?

What is meant by the degree of combined leverage?

Q: Determine the marginal and average tax rates under the tax law for

Determine the marginal and average tax rates under the tax law for corporations with the following amounts of taxable income: a. $60,000 b. $150,000 c. $500,000