chapter1-INTRODUCTION TO CORPORATE FINANCE 부터
chatper26-MERGERS AND ACQUISITIONS 까지 모두 담겨있습니다.
Fundamentals of Corporate Finance 9
Ross, Westerfield, and Jordan
INTRODUCTION TO CORPORATE
Answers to Concepts Review and Critical Thinking Questions
1. Capital budgeting (deciding whether to expand a manufacturing plant), capital structure (deciding
whether to issue new equity and use the proceeds to retire outstanding debt), and working capital
management (modifying the firm’s credit collection policy with its customers).
2. Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, hard to raise
capital funds. Some advantages: simpler, less regulation, the owners are also the managers,
sometimes personal tax rates are better than corporate tax rates.
3. The primary disadvantage of the corporate form is the double taxation to shareholders of distributed
earnings and dividends. Some advantages include: limited liability, ease of transferability, ability to