Questions from General Finance


Q: Why do you think most secondary-market trading in bonds takes

Why do you think most secondary-market trading in bonds takes place over the counter?

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Q: Explain the popular theories for the rationale of the term structure of

Explain the popular theories for the rationale of the term structure of interest rates.

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Q: What is an investment banker, and what major functions does he

What is an investment banker, and what major functions does he or she perform?

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Q: It’s been 2 months since you took a position as an assistant

It’s been 2 months since you took a position as an assistant financial analyst at Caledonia Products. Although your boss has been pleased with your work, he is still a bit hesitant a...

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Q: What is the major difference between a negotiated purchase and a competitive

What is the major difference between a negotiated purchase and a competitive bid purchase?

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Q: A company’s financial statements consist of the balance sheet, income statement

A company’s financial statements consist of the balance sheet, income statement, and statement of cash flows. Describe what each statement tells us.

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Q: How do gross profits, operating profits, and net income differ

How do gross profits, operating profits, and net income differ?

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Q: How do dividends and interest expense differ?

How do dividends and interest expense differ?

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Q: Why is it that the preferred stockholders’ equity section of the balance

Why is it that the preferred stockholders’ equity section of the balance sheet changes only when new shares are sold or repurchased, whereas the common stockholders’ equity section changes from year t...

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Q: Why might one firm have positive cash flows and be headed for

Why might one firm have positive cash flows and be headed for financial trouble, whereas another firm with negative cash flows could actually be in a good financial position?

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