FIN 370 Week 4 Discussion Question Worksheet

 

Reference: Jordan. B., Ross. S., &Westerfield R. (2016). Fundamental of Corporate Finance (11th ed.) New York, NY: MC Graw-Hill.

 

Instructions: Minimum of 125 words for each question with in-text citation and reference

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Fundamentals of Corporate Finance, Ch. 13: Return, Risk, and the Security Market Line
What are the differences between systematic and nonsystematic risk?

 

 

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Fundamentals of Corporate Finance, Ch. 14: Cost of Capital
What is the definition of weighted average cost of capital?

 

____________________________________________________________________

Fundamentals of Corporate Finance, Ch. 16: Financial Leverage and Capital Structure Policy

 

Question 1

How do increases in debt affect the weighted average cost of capital?

 

Question 2

What is leverage and why would you use it?  What is some potential pitfalls as well?

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Fundamentals of Corporate Finance, Ch. 17: Dividends and Payout Policy

Question 1

How does dividend policy affect the growth of a firm?

 

 

Question 2
If you are getting paid a dividend, do you want cash or stock?  Why or why not? Please explain

 

_____________________________________________________________________________

Finance Fundamentals
What is the definition of Beta as used in corporate finance?

 

___________________________________________________________________

Making Investment Decisions
What are the primary inputs in the calculation of the weighted average cost of capital?

 

 

 

 

FIN 370 Week 4 Discussion Question Worksheet

 

Reference: Jordan. B., Ross. S., &Westerfield R. (2016). Fundamental of Corporate Finance (11th ed.) New York, NY: MC Graw-Hill.

 

Instructions: Minimum of 125 words for each question with in-text citation and reference

________________________________________________________

Fundamentals of Corporate Finance, Ch. 13: Return, Risk, and the Security Market Line
What are the differences between systematic and nonsystematic risk?

 

 

____________________________________________________________________

Fundamentals of Corporate Finance, Ch. 14: Cost of Capital
What is the definition of weighted average cost of capital?

 

____________________________________________________________________

Fundamentals of Corporate Finance, Ch. 16: Financial Leverage and Capital Structure Policy

 

Question 1

How do increases in debt affect the weighted average cost of capital?

 

Question 2

What is leverage and why would you use it?  What is some potential pitfalls as well?

________________________________________________________________

Fundamentals of Corporate Finance, Ch. 17: Dividends and Payout Policy

Question 1

How does dividend policy affect the growth of a firm?

 

 

Question 2
If you are getting paid a dividend, do you want cash or stock?  Why or why not? Please explain

 

_____________________________________________________________________________

Finance Fundamentals
What is the definition of Beta as used in corporate finance?

 

___________________________________________________________________

Making Investment Decisions
What are the primary inputs in the calculation of the weighted average cost of capital?