III) Through a Dutch auction process
IV) Through direct negotiation with a major shareholder
15. Stock price cycles or patterns self-destruct as soon as investors recognize them through
16. Which of the following is a statement of semi-strong form efficiency?
I) If the markets are efficient in the semi-strong form then prices will adjust immediately to public information
II) If the markets are efficient in the semi-strong form then prices reflect all information
III) If the markets are efficient in the semi-strong form then prices will adjust to newly published information after a long time delay
17. Net working capital is defined as
18. If a firm permanently borrows $ 100 million at an interest rate of 8 %, what is the present value of the interest tax shield?( Assume that the tax rate is 30 %)
19. The difference between Total Assets of a firm and its Total Liabilities is called
20. Capital structure is irrelevant if:
21. In order to find the present value of the tax shields provided by debt, the discount rate used is the:
22. What are the common ratios used to measure liquidity of a firm?
23. What is the model that is used to prepare a pro-forma statement?
24. Briefly explain the information content of share repurchase
25. Generally, a firm is able to find positive NPV opportunities with: