Explain the difference between equity and debt

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1. Explain the statement Common stockholders have a residual claim on the issuing firms assets, Explain the difference between equity and debt.

2. Compare and contrast Capital Asset Pricing Model (CAPM) with Arbitrage Pricing Theory (APT). What is the single most important issue with CAPM? Which model is more realistic? Why?

3. Aspen Skiing Company operates ski resorts across the U.S. It does its business in U.S. dollars. It has nothing to do with foreign currencies. Should it worry about the value of U.S. dollar? Why?

Reference no: EM131950818

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