1. How is a stock's beta computed?
2. Does a bond's time to maturity ever equal its duration? Please explain.
3. Are the valuation models for common stock with constant, zero growth dividend payments and for preferred stock very similar? Please explain.
4. How do mutually exclusive and independent investment projects differ?
5. What are some of the disadvantages of the payback rule in capital budgeting?
7. How is the cost of stock adjusted for flotation costs? Please explain.
8. How can a company reduce its cash conversion cycle?
9. Would you expect that a technology firm or a utility firm would have a higher Price/Earnings ratio? Please explain.
10. How does an annuity due differ from an ordinary annuity?
The solution explains some theory questions relating to finance