Interactive Activities

First

1- Why do firms compute weighted-average costs of capital?

2- What happens when capital structure changes?

Second

• Is the yield curve usually upward- or downward-sloping? And what about today’s yield curve?
• Explain the differences among various concepts of yield such as yield to maturity, yield to call, and anticipated realized yield

Third

• Describe the situations when licensing is not a good option for a firm.
• What prompted the formation of the European Union? Discuss

Fourth

• How is corporate parenting different from portfolio analysis? How is it alike? Is it a useful concept in a global industry?
• What are the tradeoffs between an internal and an external growth strategy? Which approach is best as an international entry strategy?

Note

answers shouldn’t exceed 120 words