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What is a common stock? What do we mean when we say shareholders have a residual claim on assets? What is a stock option? A
What is a common stock? What do we mean when we say shareholders have a residual claim on assets? What is a stock option? A put option? A call option? What is the exercise value of an option? What is the weighted average cost of capital for a firm? When determining our WACC, do we use book values or market out component costs? Briefly, why? What is the Net Present Value method of project evaluation? What cash flow elements need to be used in computing NPV? What are the three kinds of risk we consider in a project? Which is most important? Please define "scenario analysis." What are we trying to measure when we use it? What begins, and underlies, the process of forecasting future financial performance? Why do we expect rapidly-growing firms to require more outside capital than slower growing firms
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