Questions from General Finance

Q: Explain the notion of a perfect capital market. Use common-

Explain the notion of a perfect capital market. Use common-sense language such as you might use in explaining the concept to your grandfather who has never taken a finance class.

Q: This Mini Case is available in My Finance Lab. On

This Mini Case is available in My Finance Lab. On the first day of your summer internship, you’ve been assigned to work with the chief financial officer (CFO) of San Blas Jewels Inc....

Q: Identify the principal motives for holding cash and near-cash assets

Identify the principal motives for holding cash and near-cash assets. Explain the purpose of each motive.

Q: The issue as to whether dividend policy has an effect on share

The issue as to whether dividend policy has an effect on share prices raises a question as to whether dividends paid out to stockholders are any more “certain” than the expected future dividends the s...

Q: Farm Co, Inc. follows a policy of paying out cash

Farm Co, Inc. follows a policy of paying out cash dividends equal to the residual amount that remains after funding 40 percent of its planned capital expenditures. The firm tries to maintain a 40 perc...

Q: Describe the types of limitations firms can face from legal restrictions on

Describe the types of limitations firms can face from legal restrictions on dividend payments.

Q: The board of directors of Kensington Enterprises has decided to pay cash

The board of directors of Kensington Enterprises has decided to pay cash dividends totaling $5 million in the first quarter of the year. This payment represents the initiation of a cash dividend for t...

Q: Final earnings estimates for Chilean Health Spa & Fitness Center have been

Final earnings estimates for Chilean Health Spa & Fitness Center have been prepared for the CFO of the company and are shown in the following table. The firm has 7,500,000 shares of common stock outst...

Q: The Blunt Trucking Company needs to expand its fleet by 40 percent

The Blunt Trucking Company needs to expand its fleet by 40 percent to meet the demands of two major contracts it just received to transport military equipment from manufacturing facilities scattered a...

Q: Brigman Industries is evaluating its financing requirements for the coming year.

Brigman Industries is evaluating its financing requirements for the coming year. The firm has been in business for 1 year, and the CFO expects that the relationship between firm sales and its operatin...