8-10 questions per chapter
5 short answer
Look at valuation of cash flows
Risk is with the equity therefore the equity returns will be higher to adjust or the risk
If you become an analyst Run cash flows on the debt
Portfolio considrations arent relevant
Chapter 2 Review Questions
A. The real interest rate is what the investor receives after allowing for inflation. The stated interest
rate contains a nominal rate and an expected rate of inflation.
B. The corporate bond
Exam 1 preparation:
- Subdivision describes the legal and physical steps a developer must take
to convert raw land into developed land.
- Three stages: raw land, semideveloped, and developed or subdivided land