Review Topics for the Final Exam - Theory of Corporate Finance | FIN 332, Exams of Finance

Download Review Topics for the Final Exam - Theory of Corporate Finance | FIN 332 and more Exams Finance in PDF only on Docsity! Review Topics for the Final Exam 1. Four types of mergers based on the business relation between firms 2. Various synergetic effects of mergers 3. Major anti-takeover strategies 4. How do we apply APV method to valuate a target firm in a merger and acquisition? 5. Why do firms divest assets? 6. MM capital theory: assumptions, proposition I, proposition II, and how do we interpret them? 7. How does MM theory change if we consider: (1) tax; (2) bankruptcy cost; (3) agency problems? What is the trade-off theory? 8. Two types of capital structure calculation problems: (1) the application of MM theory; (2) the recapitalization decision. 9. Signaling capital structure theory. 10. Three basic dividend theories: irrelevance, bird-in-hand, tax preference. What is the “clientele effect” dividend theory? 11. Signaling dividend theory. 12. Residual dividend model, its main merit and problem, and related calculations. 13. Definitions and incentives of DRIPs, stock dividend, stock splits and stock repurchases? 14. Functions of venture capital funds for a start-up firm. 15. Gross proceeds, net proceeds, spread and money-on-the-table. 16. Underwriting vs. best efforts. 17. Major theories that explain IPO underpricing. 18. Why do firms go public and go private? 19. What affects the refunding decisions for callable bonds or other types of debt? 20. Political roots for corporate governance in USA. 21. Ways to improve corporate governance. 22. All the quizzes and homework assignments. GOOD LUCK!