Homework Help

1Explain how investors are compensated for the risk(s) they take by buying the stock of any company.(4 points)

2Define Fundamental Analysis (4 points)

3Which firm is more likely to be highly leveraged, a firm with a high concentration of intangible assets or a firm whose assets are mostly tangible in nature?(4 points)

4Explain the primary purpose of credit analysis in the private debt markets.(4 points)

5What is the minimum debt rating a company can receive and still be considered an investment grade company ?(4 points)

6What is the best way to determine whether an acquiring company is overpaying for a target company ? (4 points)

7In an acquisition, what is the best way of determining whether the valuation assumptions are reasonable ?(4 points)

8What is the name of the inter-agency committee that reviews foreign takeovers of U.S. companies to make sure they are being sold for a fair value ? (4 points)

9What are the best indicators of a company's current and future profitability ?(4 points)