FIN 370 Week 4 Discussion Question Worksheet
Reference: Jordan. B., Ross. S., &Westerfield R. (2016). Fundamental of Corporate Finance (11th ed.) New York, NY: MC Graw-Hill.
Instructions: Minimum of 125 words for each question with in-text citation and reference
Fundamentals of Corporate Finance, Ch. 13: Return, Risk, and the Security Market Line
What are the differences between systematic and nonsystematic risk?
Fundamentals of Corporate Finance, Ch. 14: Cost of Capital
What is the definition of weighted average cost of capital?
Fundamentals of Corporate Finance, Ch. 16: Financial Leverage and Capital Structure Policy
How do increases in debt affect the weighted average cost of capital?
What is leverage and why would you use it? What is some potential pitfalls as well?
Fundamentals of Corporate Finance, Ch. 17: Dividends and Payout Policy
How does dividend policy affect the growth of a firm?
If you are getting paid a dividend, do you want cash or stock? Why or why not? Please explain
What is the definition of Beta as used in corporate finance?
Making Investment Decisions
What are the primary inputs in the calculation of the weighted average cost of capital?