Discuss the difference between book values and market values

Reference no: EM132172131

ESSAY QUESTIONS -

1. Do you think agency problems arise in sole proprietorships and/or partnerships?

2. What is difference between financial statement of cash flow and accounting financial statement of cash flow?

3. Discuss the difference between book values and market values on the balance sheet and explain which is more important to the financial manager and why?

4. Suppose a firm calculates its external funding needs and finds that it is negative. What are the firm's options in this case?

5. Should financing costs be included as an incremental cash flow in capital budgeting analysis?

6. Why is it not necessarily bad for the operating cash flow to be negative for a particular period?

7. What should be the goal of the financial manager of a corporation? Does it mean that financial managers have to do anything and everything to achieve that goal? Explain your answer.

8. a. What is the relationship between the price of a bond and it's YTM?

b. Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? What about for discount bonds? For bonds selling at par value?

9. Based on the dividend growth model, what are the two components of the total return on a share of stock? Which do you think is typically larger?

10. What are major determinants of growth?

Reference no: EM132172131

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