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1)Describe an efficient capital market for stocks           2

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1)Describe an efficient capital market for stocks

 

 

 

 

 

2. Compare and contrast the weak form of market efficiency with the strong and semi-strong forms

 

 

 

 

3. Define and explain capital asset pricing model

 

 

 

4. Explain how leverage can improve returns to the shareholders.

 

 

 

 

5. Distinguish between direct and indirect costs in a corporate bankruptcy.

 

 

 

 

6. What is the pecking order theory?  Is the pecking order relevant? Why?

 

 

 

 

 

7. Distinguish dividends and stock splits.  Which factors influence dividend payout?

 

 

 

 

8. Describe agency costs and the impact on bondholders.