These are the homework questions for Chapter 1 in Corporate Finance.
Give the firm's creditors a binding say on executive pay
Give shareholders a nonbinding vote on executive pay
Give shareholders a binding vote on executive pay
Give the chairman of the board the final say on executive pay
Give the firm's creditors a nonbinding say on executive pay
What is the cost of debt financing?
What debt-equity ratio is best suited to our firm?
How should the firm raise additional capital to fund its expansion?
Which type of debt is best suited to finance our inventory?
How much cash should the firm keep in reserve?
Selecting new equipment to purchase
Determining the optimal inventory level
Establishing the preferred debt-equity level
Setting the terms of sale for credit sales
Determining when suppliers should be paid
Total debt level.
Provide the benefits of the corporate structure to foreign-based entities.
Allow companies to reorganize themselves through the bankruptcy process.
Provide limited liability while avoiding double taxation.
Allow a portion of its owners to enjoy limited liability while granting the other portion of its owners control over the entity.
Spin-off a wholly-owned subsidiary.
Market value of existing stock
Number of shares outstanding
Decreased senior management's involvement in the corporate annual report.
Decreased the number of U.S. firms going public on foreign exchanges.
Made officers of publicly traded firms personally responsible for the firm's financial statements.
Reduced the annual compliance costs of all publicly traded firms in the U.S.
Greatly increased the number of U.S. firms that are going public for the first time.
Increase the number of firms that "go dark"
Decrease the number of publicly traded firms
Increase protection against corporate fraud
Limit secondary issues of corporate securities
Increase the costs of going public
Giving all employees a bonus if a certain level of efficiency is maintained
Selling an underproducing segment of the firm
Compensating a manager based on his or her division's net income
Rejecting a profitable project to protect employee jobs
Hiring an independent consultant to study the operating efficiency of the firm
Downsizing a firm
Reducing both management and non-management salaries
Increasing the size of a firm's operations
Separating management from ownership
Decreasing employee turnover
Maria gave 100 shares of Alto stock to her best friend.
Gene purchased 300 shares of Alto stock from Ted.
South Wind Products sold 1,000 shares of newly issued stock to Mike.
The president of Trecco, Inc. sold 500 shares of Trecco stock to his son.
Terry sold 3,000 shares of Uno stock to his brother.
Here's an interesting quiz for you.