Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
What are stock repurchases? Discuss the advantages and disadvantages of a firm's repurchasing its own shares.
What are some factors a manager should consider when establishing his or her firm's target capital structure?
To begin, define the terms optimal capital structure and target capital structure.
A friend promises to pay you $1,000 two years from now if you lend hime $800 today. What annual rate of interest is your friend offering?
What is current value of this stock if the required rate of return is 14 percent.
In general terms, how would a change in investment opportunities affect the payout ratio under the residual payment policy?
Where on the asset side of the balance sheet are trading securities, available-for-sale securities, and held-to maturity securities reported? Explain.
How does the existence of asymmetric information and signaling affect capital structure?
Explain why, according to the pecking order theory, firms prefer internal financing to external financing.
Explain what is meant by the signaling effects of dividend policy.
When is a debt security considered impaired? Explain how to account for the impairment of an available-for sale debt security.
Explain what is meant by the informational content of dividend policy.
What purpose does the variety in bond features (types and characteristics) serve?
Explain the research results of Modigliani and Miller in the area of capital structure.
What distinguishes a simple capital structure from a complex capital structure?
Explain the difference between business risk and financial risk.
What effect do stock dividends or stock splits have on the computation of the weighted-average number of shares outstanding?
What constitutes significant influence when an investor's financial interest is below the 50% level?
What are the computational guidelines for determining whether a convertible security is to be reported as part of diluted earnings per share?
What are the arguments for giving separate accounting recognition to the conversion feature of debentures?
Compute basic EPS amounts for 2011 under each of the following assumptions (consider each assumption separately): The company has only one class of common stock with 20,000 shares outstanding.
Explain briefly the dividend irrelevance theory that was put forward by Modigliani and Miller. What were the key assumptions underlying their theory?
If a company's outstanding shares are increased through a stock dividend or a stock split, how would that alter the presentation of its EPS data?
Compute the net interest expense to be reported for this note and related swap transaction as of December 31, 2010.