Questions from General Finance

Q: What are the advantages of a stock split or dividend over a

What are the advantages of a stock split or dividend over a cash dividend?

Q: Why would a firm repurchase its own stock?

Why would a firm repurchase its own stock?

Q: What are the assumptions made by the EOQ model?

What are the assumptions made by the EOQ model?

Q: What is a general definition of the intrinsic value of an asset

What is a general definition of the intrinsic value of an asset?

Q: Explain the impact of inflation on rates of return.

Explain the impact of inflation on rates of return.

Q: If we were to graph the returns of a stock against the

If we were to graph the returns of a stock against the returns of the S&P 500 Index, and the points did not follow a very ordered pattern, what could we say about that stock? If the stock’s returns tr...

Q: Define the term structure of interest rates.

Define the term structure of interest rates.

Q: Explain the relationship between the required rate of return and the value

Explain the relationship between the required rate of return and the value of a security.

Q: How should managers compare two mutually exclusive projects of unequal size?

How should managers compare two mutually exclusive projects of unequal size? Should the approach change if capital rationing is a factor?

Q: In the preceding chapter we examined the payback period capital-budgeting

In the preceding chapter we examined the payback period capital-budgeting criterion. Often this capital-budgeting criterion is used as a risk-screening device. Explain the rationale behind its use.