Crowdly
Add to Chrome
FINC-3470-E1-Corporate Finance
Looking for FINC-3470-E1-Corporate Finance test answers and solutions? Browse our comprehensive collection of verified answers for FINC-3470-E1-Corporate Finance at moodle.uleth.ca.
Get instant access to accurate answers and detailed explanations for your course questions. Our community-driven platform helps students succeed!
Which of the following CANNOT be considered as an alternative to cash dividend?
Bob's Bait Shop has 1,200 shares outstanding at a market price per share of $13. Ed's Fish Shop has 2,800 shares outstanding at a market price of $29 a share. Neither firm has any debt. Ed's Fish Shop is acquiring Bob's Bait Shop for $19,500 in cash. What is the merger premium per share?
A call option contract:
Which of the following is the best definition of Hedging?
Company A can borrow at either an 8.50% fixed rate or a floating rate of prime + 1.75%. Company B can borrow at either a floating rate of prime + 1.25% or a fixed rate of 8.65%. Company A prefers a floating rate but currently borrows at fixed, whereas Company B prefers a fixed rate but currently borrows at floating. Which one of the following terms would be acceptable to both Company A and B (& allowing the dealer to make a profit) if they opted to enter an interest rate swap?
Knox Inc. maintains a debt-equity ratio of 0.50 and follows a residual dividend policy. The company has after-tax earnings of $2,800 for the year and has capital requirements of $3,000 for the new project. What is the total amount of money available for the firm to pay out in dividends this year?
A successful merger requires that the:
A swap contract is defined as an agreement between two parties to exchange:
Which one of the following statements is most likely to be true, concerning futures contracts?
Kinston Inc. is an all-equity company, and it has a market value equal to its book value. Currently, the firm has excess cash of $800 and other assets of $4,200. Equity is worth $5,000 and the firm has 200 shares of stock outstanding. Given a net income of $350, what will the new EPS be if the firm uses all its excess cash to complete a stock repurchase at the market price?