• What does D.C.F. typically stand for in finance?

• Which is a better capital budgeting tool: NPV or Payback period?Why?

• Should more volatile stocks have a higher return?

• Does the interest tax shield subsidize debt?

• Can a firm with no debt lower its WACC by issuing debt?

• Is the price of oil a systematic risk factor, and what is your reasoning?

• If two assets have zero covariance, can they still be used to diversify each other even if the CAPM holds?

• Can you earn excess returns trading on rumors about a merger?Why or why not?

• In a Modigliani-Miller world with no taxes, do de-leveraging recapitalizations (issuing equity and using the proceeds solely to retire debt) increase the stock price?

• A put and a call on the same underlying security have the same maturity and exercise price. If they also sell for the same price, prove which one is in the money.