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Finance Discussion Questions

1. Some believe that equity financing (common stock) aside from dividend payments is free financing for the company. Do you agree? Why?

2. What is beta and why is it important?

3. Leverage - Operating and Financial - how are the two different? And how are they similar?

4. Should dividend payments be tax deductible? If not, should interest payments?

5. Chartists believe that over time, patterns will emerge in the market. Learn the patterns and you will be able to understand where the market is going and profit from it. What do you think?

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1. Some believe that equity financing (common stock) aside from dividend payments is free financing for the company. Do you agree? Why?

I do not agree, the investors require their expected rate of return. This can be from dividends only or from dividends and capital gains. If the required returns are not met, investors will not invest and the company will not get financing.

2. What is beta and why is it important?

Beta measures the relation between the ...

Solution Summary

The solution has various essay type finance questions.

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