ANSWER THE FOLLOWING QUESTIONS -
1- Outline the key elements of the Efficient Markey Theory and identify which, if any, you feel most accurately depicts how our market behaves. Your response should be in your own words.
2- What are the key types of stock typically issued by publicly traded organizations? If you were to invest $10,000 of your own funds, which type would you choose, why? Your response should be in your own words.
3- What are some of the key limitations of using ratio analysis to evaluate the performance of an organization? Your response should be in your own words.
4- Why is the time value of money an important concept in business? Your response should be in your own words.
5- What is common-size analysis and what information can it tell you about an organization that looking at the $$ s on the financial statements alone cannot provide? Your response should be in your own words.
6- Explain the three types of premiums and the role they play bond rates. Your response should be in your own words.
7- What are the key arguments of those who feel the Efficient Market Theory is invalid? Your response should be in your own words.
8- Explain how risk is included in the CAPM theory. Your response should be in your own words.
9- Identify and explain the key elements that impact the time value of money. Your response should be in your own words.
10- What role does the time value of money play in determining the issue price of a bond? Your response should be in your own words.