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Explain how to observe beta of an all-equity firm that is publicly listed. Suppose the dataset is short or polluted with some special events, how can you make the estimate more reasonable/robust?

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FNCE 451 Final Examination Questions and Answers1.Explain how to observe beta of an all-equity firm that is publicly listed. Suppose the dataset is short or polluted with some special events, how can you make the estimate more reasonable/robust?2.In computing WACC for a capital budgeting decision, is it best practice to use target capital structure of the firm or actual financing structure of a project? To get the debt cost of capital, is it better to use market bond yields or coupons on the debt?3.Use a cost-of-equity argument to explain why firms provide lots of disclosure, open quarterly calls to all investors, and seek a familiar/tradable share price.4.State the result of Modigliani and Miller for capital structure with no taxes. List three assumptions and explain where we use that assumption.5.Give 3 reasons to prefer dividends and 3 to prefer share repurchases. Give 2 reasons to do either versus keeping the cash.6.Use the fact that IPO ‘fills’ depend on the hotness of the issue to explain why the observed average IPO first day rally is not necessarily a market anomaly.7.Give examples of positive and negative convents. Justify their use via the tradeoff model for capital structure.8.Compare a Canada call to a call provision at a set price. Why do issuers sometimes Canada-call their bonds?9.Discuss drivers of option valuation.10.Describe the covered call strategy and explain how to implement the same exposure using put options.11.Use a combination of calls, a risk-free bond, and the overall firm to describe the exposure of firm equity holders and bond holders. Do it again with puts instead of calls.”Do you need a similar assignment done for you from scratch? We have qualified writers to help you with a guaranteed plagiarism-free A+ quality paper.

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