jgeorgesyouLv1in Finance·31 May 2024Tue or False: In a perfect capital market, minimizing the weighted average cost of capital is equivalent to maximizing the firm's value.
jgeorgesyouLv1in Finance·31 May 2024Tue or False: As long as the firm is certain that the return on assets will be higher than the interest rate, an issue of debt makes the shareholders better off.
jgeorgesyouLv1in Finance·31 May 2024Tue or False: If firms did not have limited liability, their asset risk would be increased.
jgeorgesyouLv1in Finance·30 May 2024A put and a call on the same underlying security have the same maturity and exercise price. If they also sell for the same price, prove which one is in the money.
jgeorgesyouLv1in Finance·30 May 2024In a Modigliani-Miller world with no taxes, does de-leveraging recapitalizations (issuing equity and using the proceeds solely to retire debt) increase the stock price?
jgeorgesyouLv1in Finance·30 May 2024Can you earn excess returns trading on rumors about a merger? Why or why not?
jgeorgesyouLv1in Finance·30 May 2024If two assets have zero covariance, can they still be used to diversify each other even if the CAPM holds?
jgeorgesyouLv1in Finance·30 May 2024 Is the price of oil a systematic risk factor, and what is your reasoning?
jgeorgesyouLv1in Finance·30 May 2024Which is a better capital budgeting tool: NPV or Payback period? Why?