1. What are the key types of stock typically issued by publicly traded
organizations? If you were to invest $10,000 of your own funds, which type
would you choose, why? Your response should be in your own words.
2. If you were to issue a bond for your organization to raise funds for
a capital project, what type of bond would you choose and why? Your response
should be in your own words.
3. Identify and explain the key elements that impact the time value of
money. Your response should be in your own words.
4. Outline the key elements of the Efficient Markey Theory and identify
which, if any, you feel most accurately depicts how our market behaves. Your
response should be in your own words.
5. Explain how risk is included in the CAPM theory. Your response
should be in your own words.
6. Explain the three types of premiums and the role they play bond
rates. Your response should be in your own words.
7. Identify two key liquidity ratios, explain how they are calculated,
and discuss what each ratio can tell about an organization s performance.
Your response should be in your own words.
8. Identify three key solvency ratios (debt and asset ratios), explain
how they are calculated, and discuss what each ratio can tell about an
organization s performance. Your response should be in your own words.
9. What is trend analysis and what information can it tell you about an
organization that looking at the $$ s on the financial statements alone
cannot provide? Your response should be in your own words.
10. Why is the time value of money an important concept in business?
Your response should be in your own words.