Compare and contrast different methods of capital reconstruction, such as share buybacks, debt - for - equity swaps, and the cancellation of share capital. When might a company choose one method over another, and what are the financial implications of each?

Which of the following is not a determinant of investment? a) The efficiency of capital equipment b) The level of consumer demand c) Interest rates d) The willingness of investors to buy new share issues

Which of the following does NOT directly affect a company's cost of equity? Select one: a. Return on assets b. Expected market return c. Risk-free rate of return d. The company's beta

Use B&M’s data and the free cash flow valuation model to answer the following questions: What is its estimated value of operations? What is its estimated total corporate value? (This is the entity value.) What is its estimated intrinsic value of equity? What is its estimated intrinsic stock price per share?

Is it better to finance a company thru debt or thru equity? Why? What are the downside and upside to each?

How does a cost-efficient capital market help reduce the prices of goods and services? Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital. Is an initial public offering an example of a primary or a secondary market transaction? Indicate whether the following instruments are examples of money market or capital market securities. a. US Treasury bills b. Long-term corporate bonds c. Common stocks d. Preferred stocks e. Dealer commercial paper Briefly explain what is meant by the term efficiency continuum.

What does it mean to adopt a maturity matching approach to financing assets, includingcurrent assets? How would a more aggressive or a more conservative approach differ fromthe maturity matching approach, and how would each affect expected profits and risk? Ingeneral, is one approach better than the others?

Do we utilize the historical costs of existing debt and equity to compute the cost of capital, or do we use the current costs as decided by the market to compute the cost of capital? Why?

Which of the following is a working capital management issue? O A. The choice of which long-term assets to purchase to meet the firm's business goals. O B. The appropriate amount of cash to hold. C. None of the above is a working capital management issue. O D. The proper mix of stocks and bonds to issue for financing assets.

Evaluate the following assets classes or alternative investments from risk and return point of view. Describe their advantages and disadvantages. Corporate bonds Corporate stocks Real estate Derivatives Commodities Private equity (venture capital)