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Why is corporate finance important to all managers?




a.;Why is corporate finance important to all managers?;b.;Describe the organizational forms a company might have as it evolves from a start-up toa major corporation. List the advantages and disadvantages of each form.;c.;How do corporations go public and continue to grow?;What are agency problems?;What is corporate governance?;d.;What should be the primary objective of managers?;e.;What three aspects of cash flows affect the value of any investment?;f.;What are free cash flows?;g.;What is the weighted average cost of capital?;h.;How do free cash flows and the weighted average cost of capital interact to determine a firm?s value?;i.;Who are the providers (savers) and users (borrowers) of capital?;j.;What do we call the price that a borrower must pay for debt capital? Interest Rate;What is the priceof equity capital?;What are the four most fundamental factors that affect the cost ofmoney, or the general level of interest rates, in the economy?;k.;What are some economic conditions (including international aspects) that affect the cost of money?;l.;What are financial securities? Describe some financial instruments..;m.;List some financial institutions.;n.;What are some different types of markets?;o.;How are secondary markets organized?;?;2-6: Statement of Retained Earnings;o;In its most recent financial statements, Newhouse Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings were$780 million. How much in dividends was paid to shareholders during the year?;?;2-7 Corporate Tax Liability;o;The Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes.;What are the firm?s income tax liability and its after-tax income?;What are the company?s marginal and average tax rates on taxable income?;?;2-9 Corporate After-Tax Yield (muni, corp, PS);o;The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which yield 7.5%, state of Florida muni bonds, which yield 5% (but are not taxable), and AT&T preferred stock, with a dividend yield of 6%. Shrieves?s corporation tax rate is 35%, and 70% of the dividends received are tax exempt. Find the after-tax rates of return on all three securities.


Paper#27633 | Written in 18-Jul-2015

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