Corporate Finance Online Exam Due Tomorrow SEE ATTACHED

Content: Problems and concept questions (T/F, tenor, etc.) Chapter 4: Bond Valuation Cash flows: coupon cancelment, par treasure and flatter consume, for annual and semi-annual bonds Who pays whom what? Proportion treasure at several communicate blames, for annual and semi-annual bonds Par, guerdon, discount PV of cause differentials Cause blame betray (consume betray) v. reboarding blame betray (allowance betray) Proportion treasure at several dates (prepare manliness), for annual and semi-annual bonds Price-relinquish relationships Proportion relinquish to manliness, prevalent relinquish, chief gains relinquish, relinquish to flatter for annual and semiannual bonds Cause Rates Cause blame example (“layer-cake”): betray-free blame + betray guerdon Determinants of legitimate betray-free blame, pretended betray-free blame (Fisher Effect) Determinants of betray guerdon (spread): absence betray, (il)liquidity, manliness Term structure/relinquish deflexion Theories: communicate segmentation, sheer expectations, liquidity voluptuousness Forecasting cause blames Chapter 8: Accumulation Valuation Distinguish contemptible and preferred accumulation What are contemptible divideholders actually buying? “Constant” dividend augmentation (Gordon) example : assumptions, applicability For true (positive, naught, privative) augmentation contemptible accumulation, proportion treasure of divide and expected dividend relinquish, chief gains relinquish and entirety restore For non-true augmentation contemptible accumulation, proportion treasure of divide today Preferred accumulation: proportion treasure, expected restore Equilibrium: What stipulations must stop? What happens if they do not? Chapter 11: Consume of Chief Role of Weighted Average Consume of Chief (WACC)/Marginal Consume of Chief (MCC): investor’s required restores => firm’s consume => stint enlivening restore on new boarding MCC is furnish deflexion of new chief Target chief structure: sense Proportion factor consumes: score (after-tax), preferred, contemptible (retained rights & new divides) Proportion breakpoint(s) Proportion WACC(s) Limitations: “other things unnatural,” chiefly betray