{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

S07Assg1 - FIN 2200 CORPORATION FINANCE Sum 2007...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 2200 – CORPORATION FINANCE Sum, 2007 Instructors: A. Dua, Assignment #1 NOTE: This assignment is to be handed in! But only questions 5, 6, 11-13, 15, 20, 22, 23, 25, 28 29 will be marked (for a total of 12 marks). Only correct final answers will be given credit. 1. Firms issue securities or financial instruments (or claims) to raise capital. Give several words (or terms) used to classify these claims. 2. Indicate the five key components that comprise the balance sheet. 3. Indicate how the value of a firm is created and recognized over time. 4. Indicate the factors used in finance to determine what the value of an investment made by the firm depends on. 5. The Simple Corporation has outstanding obligations to the Complex Corporation of $250. It is year-end and the total cash flow of Simple from all sources is $325. What is the contingent payoff to the debt-holders and the equity-holders? 6. The Splitz Corporation has borrowed $5 million in debt with a promise to repay $5.5 million in one year. The corporation had 10 million shares outstanding worth $2 each at the time of the borrowing. Splitz earns $6 million during the year. What is the debt-holder's contingent claim; how much do the debt-holders receive; and, how much do the equity holders receive? 7. What techniques do shareholders use as they attempt to control managerial behavior?
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern