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 :