Reference no: EM131354585
Please define the following:
1. What is an efficient market?
2. What does the efficient markets hypothesis imply for corporate financial management
3. The underwriting process and the functions of investment banking
4. Private placement vs. public offering.
5. Shelf registration vs. traditional underwriting.
6. Negotiated sale vs. competitive bidding.
7. Firm commitment (fully underwritten issue) vs. best efforts.
8. Initial public offerings (IPOs) – How do they perform? Why are they underpriced?
9. Why might be the cause of hot new-issue periods (cycles)?
10. The issue (flotation or issue) costs: What are they? Are they the same for selling stocks, bonds, etc.?
11. Stock warrant vs. call option. (Warrants are long term options sold by corporations; options are sold by anyone and are short-term.)
12. What is a debenture bond? A subordinated debt (bond)? A mortgage bond? A callable bond? A Convertible bond?
13. What is Hedging, Insuring, and Diversifying? Also call and put options.
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What is the net present value at a cost of capital
: ZORAC, Inc. is contemplating an investment of $50,000 which yeilds the following cash flows: What is the actual payback period? What is the net present value at a cost of capital of 9%? What is the internal rate of return?
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Company whose strategy has shady or unethical elements
: A company whose strategy has shady or unethical elements. stands a good chance that it unethical behavior will go undetected and unnoticed. is automatically barred by the Securities and Exchange Commission from filing annual reports and having its st..
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How much is there in debt and how much in equity
: Safe Kayak Company has total assets of $1,000,000 and a weighted average cost of capital of 13%. If the cost of equity is 16%,the cost of debt is 10% and the tax rate is 35%, how much is there in debt and how much in equity?
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Convexity to estimate the change in price of the bond
: Microsoft has a bond outstanding (symbol: MSFT.GB) with a 4.20% coupon rate and a yield to maturity (continuously compounded) of 1.535%. The bond expires in June, 2019, and pays interest semi-annually. Estimate the current price of the bond. Calculat..
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What does the efficient markets hypothesis imply
: What is an efficient market? What does the efficient markets hypothesis imply for corporate financial management. The underwriting process and the functions of investment banking. Private placement vs. public offering. What is Hedging, Insuring, and ..
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Research and identify car industry and airline industry
: HI6006 Competitive Strategy Assignment. Students need to research and identify 2 companies from the any 2 following industries (total 4 companies) to apply "AAA" framework: Car Industry and Airline Industry
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Sold at the breakeven volume of ultraguard collars
: There is excitement in the air! The new UltraGuard flea collar is about to be introduced to the market. The collar will feature enhanced protection, increased longevity and is environmentally friendly. It will be priced at $9.45 and has unit variable..
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What is the value of the bondholders call option
: A 12-year maturity convertible bond with a face value of $1,000 and a 6% coupon on a company with a bond rating of Aaa is selling for $1,140. The bond pays interest annually. Each bond can be exchanged for 20 shares, and the stock price currently is ..
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Dividend is expected to grow at constant rate
: Holtzman Clothiers' stock currently sells for $27 a share. It just paid a dividend of $1.25 a share (i.e., D0 = $1.25). The dividend is expected to grow at a constant rate of 9% a year. What stock price is expected 1 year from now? What is the requir..
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