Questions tagged [corporate-finance]

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3 votes
2 answers
295 views

How to justify the treatment and control groups for Difference-In-Difference with staggered implementation of laws?

A. Background: Dong, 2019 and Dasgupta, 2019 used the same way to generate the treatment and control groups because they all learn about the impact of the same laws on different dependent variables. I ...
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6 votes
2 answers
382 views

Foundational equations or concepts of Finance

The following is paraphrased from: Fundamental equations in economics For the other sciences it´s easy to point to the most important equations, inequalities, propositions or concepts that ground the ...
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2 votes
0 answers
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If the company were to buy back all their shares, does that mean the company would own itself? [closed]

If a publicly traded company buys back all it's shares from the public, majority holder and every last person that owns it's shares who would own the company? Obviously, it wouldn't be a normal ...
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0 votes
1 answer
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Definition of market to book value?

What is the difference between (market value of equity/book value of equity) ratio and (market value of assets/book value of assets) ratio? In my opinion both measure fairly the same? Is this correct?...
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3 votes
3 answers
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Deriving and explaining the weighted cost of capital

The Wikipedia article for the "weighted cost of capital" (WACC) defines the WACC as "the rate that a company is expected to pay on average to all its security holders to finance its assets." What ...
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2 votes
2 answers
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How can a company run out of cash when its stock prices is dropping?

For instance, in 2008, the Royal Bank of Scotland saw its stock price drop by ~30% in a day, and it was apparently impossible for the bank to make it till the end of the day because it would run out ...
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