Quiz2 - Chapter 14 1 Define capital surplus 2 What rights...

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Quiz 2 Study Guide Chapter 12 1. Formula of the CAPM (12.1). 2. Examples 12.1 and 12.21 (pages 343 and 344) 3. Explain the concept of beta. 4. Explain the steps that you will undertake to compute a firm’s beta in Excel (as you did in your homework) 5. WACC formula 6. Examples 12.6 and 12.7 (pages 354 and 355) 7. Problems 14 and 16 (page 365) Chapter 13 1. Definition of Efficient Capital Markets. 2. Describe the three forms of market efficiency. 3. The implications to investors of each one. 4. The existing empirical evidence that supports or not each form of market efficiency.
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Unformatted text preview: Chapter 14 1. Define capital surplus. 2. What rights do shareholders have? 3. Example of cumulative versus straight voting. 4. What is a proxy? 5. Different between interest and dividends. 6. Definitions of indenture, covenants and some example of restrictive covenants. 7. What is preferred stock, and the differences between cumulative and non-cumulative dividends. 8. What are three reasons why preferred stock is issued? (the preferred stock puzzle) Patterns of financing. Observed that this is knows as the pecking order....
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This note was uploaded on 11/02/2011 for the course FIN 320 taught by Professor Staff during the Fall '08 term at Ill. Chicago.

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Quiz2 - Chapter 14 1 Define capital surplus 2 What rights...

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