Questions from Financial Markets

Q: Assume that a corporation purchases a new piece of equipment for $

Assume that a corporation purchases a new piece of equipment for $90,000. The equipment qualifies for a three-year class life for depreciation purposes. a. What is the dollar amount of depreciation th...

Q: How do agency costs affect a firm’s optimal capital structure? How

How do agency costs affect a firm’s optimal capital structure? How can differences in agency costs explain capital structure differences across countries?

Q: 1. Which of these principles guide corporations in the creation of

1. Which of these principles guide corporations in the creation of their public accounting statements? a. FINRA b. FASB c. GAAP d. SEC 2. How does the accrual concept affect financial statement...

Q: Why is it said that the personal-income-tax rate

Why is it said that the personal-income-tax rate in the United States is progressive?

Q: How do you expect the capital structures of two firms to differ

How do you expect the capital structures of two firms to differ if one is involved in steel production and the other does designs software to solve business problems?

Q: What implications might the pecking order and market-timing hypotheses have

What implications might the pecking order and market-timing hypotheses have for an optimal capital structure? Is the weighted average cost of capital still an important concept under these hypotheses?...

Q: Corporate tax rates vary with the amount of taxable income. What

Corporate tax rates vary with the amount of taxable income. What currently is the range (lowest and highest) of corporate tax rates in the United States?

Q: How have the Fed’s policies since the 2007-2009 recession affected

How have the Fed’s policies since the 2007-2009 recession affected corporate financing decisions?

Q: How did the Fed’s loose money policies after the 2007-2009

How did the Fed’s loose money policies after the 2007-2009 recession affect investors?

Q: Following the Fed’s efforts to lower interest rates, what actions by

Following the Fed’s efforts to lower interest rates, what actions by investors increased their potential exposure to risk?