finance homework

Required:  at least 200 words per letter.  May be shorter as long as answer is complete.

Verifiable sources/citation information.

Offering $12.00

 

a.  What are the sources of funds for a corporation and what are the costs of those components of funds?

 

b.  How can a corporation reduce its cost of capital? Is the flotation cost optimal and what is the role of investment banks in a firm’s financing?

 

c.  What is the difference between Investment-Saving schedule and WACC-Investment opportunities schedule?

 

d.  Do you think that the financial markets are efficient? Cite examples to prove your position.

 

e.  Can we predict the prices of an asset or do they follow random walks?

 

f.  Do you know any evidence about market inefficiencies? Cite examples.