Given the term structure of interest rates, the particulars of corporate income tax theory, and the trade off between risk and return, demonstrate the risk and return for both individual assets and portfolios of assets.
Given a company's capital requirements, design an appropriate capital structure using preferred and/or common stock, long-term debt, bond classes, bond ratings, and security valuation.
Select a stock in which you are interested. Calculate its per share value using the DDM or another method discussed in Chapter 9. Then find the current market value of a share of the stock. Compare that two. Can you explain the similarity or difference?
Do some research, probably on the Web, and find some bonds with differing yields to maturity (YTM). How do you explain the difference? Both the lecture and the textbook discuss some factors that may lead to this difference.