Quiz Ch 11 – Warren Buffett’s Key Lesson on Growth and Profitability
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Which lesson on growth and profitability is deemed the most important as per Warren Buffett?
Which lesson on growth and profitability is deemed the most important as per Warren Buffett?
Given specific project details, how do NPV and WACC variations affect the comparison between Projects A and B?
Which factor will increase the rate of return on World United stock without affecting its risk level, assuming all else remains constant?
What action should you take regarding the Xerox and Canon bonds with an expectation of rising interest rates?
How could a bond manager exploit a hump in the yield curve at the 5-year point?
How does a change in a bond’s yield to maturity affect its price compared to an equal-magnitude yield decrease?
What action should you take if you expect the yield spread between AA and AAA bonds to revert to its historical level (25 basis points from the current 9 basis points)?
What is the term for risks that are specific to a single firm?
Compute the implied return on a common stock issue given a dividend, the issue price of each share, and an annual dividend growth rate.
Your numbers will vary.