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Couple corporate finance questions.
hm2684
Posts: 1 Newbie
I'm a finance major at penn state, and have a midterm coming up soon. I was wondering if anyone could help me out with a couple questions that have me boggled.
1) What is the difference between maximizing firm value and maximizing stockholder wealth?
2) Why do financial instruments differ? How is risk taken into account for a financial instrument?
3) Interest rates on bank loans exceed rates on commercial paper. Why don't all firms issue commercial paper rather than borrow from banks?
Sorry if this question doesn't belong, but i'm really confused.
1) What is the difference between maximizing firm value and maximizing stockholder wealth?
2) Why do financial instruments differ? How is risk taken into account for a financial instrument?
3) Interest rates on bank loans exceed rates on commercial paper. Why don't all firms issue commercial paper rather than borrow from banks?
Sorry if this question doesn't belong, but i'm really confused.
0
Comments
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Right if you are a finance major, shouldn't the answers to all of these be in your reading material?"An eye for an eye leaves the whole world blind" - Mahatma Gandhi0
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