B-261 Chapter 15: Capital Structure: Basic Concepts151aSince Alpha Corporation is an all-equity firm, its value is equal to the market value of its outstanding sharesAlpha has 5,000 shares ofmon
B-250 Chapter 13:Corporate-Financing Decisions and Efficient Capital Markets131aFirms should accept financing proposals with positive net present values (NPVs)Firms can create valuable financing oppo
B-193 Chapter 10: Return and Risk: The Capital-Asset-Pricing Model (CAPM)101aExpected Return= (01)(-0045) + (2)(0044) + (05)(012) + (02)(0207)= 01057= 1057%The expected return on Q-mart’s stock is 10
B-418 Chapter 25: Derivatives and Hedging Risk251aA forward contract is an arrangement calling for the future delivery of an asset at an agreed-upon priceA futures contract obliges traders to purchas
B-296 Chapter 16: Capital Structure: Limits to the Use of Debt161aThe value of a firm’s equity is the discounted expected cash flow to the firm’s stockholdersIf there is a boom, Good Time will genera
B-235 Chapter 11:An Alternative View of Risk and Return:The Arbitrage Pricing Theory111Real GNP was higher than anticipated Since returns are positively related to the level of GNP, returns should r
B-346 Chapter 18: Dividends and Other Payouts181February 16:Declaration date - the board of directors declares a dividend payment that will be made on March 14February 24:Ex-dividend date - the share
B-79 Chapter 5: How to Value Bonds and StocksThe present value of any pure discount bond is its face value discounted back to the presentaPV = F / (1+r)10 = $1,000 / (105)10 = $61391bPV = $1,000 / (1
B-256 Chapter 14: Long-Term Financing: An Introduction141aSince themon stock entry in the balance sheet represents the total par value of the stock, simply divide that by the par per share:bCapit
B-354 Chapter 19: Issuing Securities to the Public191aA general cash offer is a public issue of a security that is sold to all interested investorsA general cash offer is not restricted to current st
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