Corporate Finance

Question 1

Cost of equity capital

Answer 1

Ke=D1/P + g

P=D1/(k-g)

Question 2

CAPM

Answer 2

Ke= Rf + B (Rmkt-Rf)

Question 3

Cost of preferred stock

Answer 3

Kps = D/P

Question 4

Pull on liqiudity

Answer 4

occurs when disbursements are made too quickly

Question 5

Special dividend per share would be

задача

Answer 5

1) Count value of share repurchase

2) Share repurchase/Initial shares amount

Question 6

DOL

Answer 6

DOL=(Q(P-V))/(Q(P-V)-F)

Question 7

DTL

Answer 7

DTL=DOL*DFL

Question 8

DFL

Answer 8

DFL=(Q(P-V)-FC)/(Q(P-V)-FC-Interest)

Question 9

Operating cycle

Answer 9

OpCycle=#days of inventory + #days of receivables

Question 10

Cash conversion cycle

Answer 10

CCcycle=#days of inventory + #days of receivables - #days of payables

Question 11

DBY (Discount-basis yield)

Answer 11

DBY=((face value - Purchase price)/face value) * (360/#days to maturity)

(! IMPORTANT !)
360

Question 12

Cost of preferred stock

Answer 12

Dividend/Price

Current price (!)

Question 13

Calculating CAPM: T-bills 3Months or T-bonds 10 Years as a Risk free rate?

Answer 13

10 years T-bond

Question 14

Calculating post-buyback BVPS

Answer 14

1) find prebuybook BVPS (PreBB BVPS)
2) PreBB#shares * BVPS =PreBB BV
3) PreBB BV/PostBB#shares

Question 15

Security exchange determines which date?

Answer 15

Ex-dividend date