Corporate finance exam questions and answers

What is the cost of capital then? Homemade Dividend Policy Investors will not pay higher prices for firms with higher dividend payouts. The Principle of Diversification: Which security allows stockholders to vote for board of directors? If a stockholder is not happy the way his corporation manages its business, what can he do?

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A Causes a cash inflow. What is the cost of preferred stock? Treasury Note C A U.

Corporate Finance Exams & Quizzes

Which item causes a cash outflow? Which of the following institutions help corporations issue new stocks or new bonds? B The amount of stock purchased by stockholders. A A graph that plots interest rates versus maturities B A graph that plots interest rates versus rates of returns C A graph that plots present value of corporate bonds versus time D A graph that plots corporate rates of returns versus U. What is the difference between American and European options? Which quesions the following is true about a risk premium?

What are the total variable costs of the project? Will Proctor and Gamble exercise this option on the expiration date, if the tenge appreciates?

What is your weighted average cost of capital? Which financial statement would you find retained earnings?

Kenneth R. Szulczyk

A You should proceed with the corporate project B You should purchase the U. When investors buy and sell securities in order to lower risk or use long-term investment strategies, what is this called?

What is the projected net present value? What are the projected sales of this project?

The flotation cost for new equity is 10 percent and for debt 5 percent. D Xeam statements above are correct In equilibrium, what does CAPM implies? The after-tax cost of debt is 6 percent, the cost of preferred is anssers percent, and the cost of common stock is 9 percent. Which security allows stockholders to vote for board of directors?

What is the amount of the risk premium on Zelo stock? The market risk premium, E RM Rf 3. Comments Please sign in or register to post comments.

What is the true cost of the project? In the area of investment banking, what is a syndicate? A This model tends to be very accurate B Not a very popular method with executives C Model does not distinguish between high debt and low debt companies D There is no difference between large and small companies with this financee What is the dividend yield? When a buyer has the obligation to pay for an asset as set forth in the futures contract, what is this called?

What are the projected earnings before interest and taxes? Priscilla does not want any dividend this year but does want as much dividend income as possible next year. Looking at the amortization table, how much does this person owe the bank after he pays Payment 10?

What should managers of a corporation do? Why does a corporation issue preferred stock? Other approaches to estimating wxam discount rate: Sales are estimated at 28 units per year.

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