Explain IPO initial return for the investor is the return that equals to the difference between the opening and closing price of the first trading day. Is it true? Level I American depository receipts allow to US company to raise new capital in US stock market, where those receipts could be placed and traded at one of the leading stock exchanges. Is it true? Explain. If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its WACC. Is a short-term debt included in the cost of capital estimation? Why? Could the beta be negative? In which case? Explain the consequences for the Required Rate of Return.