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1. Explain by using examples how an asset is being valued?

2. Explain the effect of an increase in corporate tax on the capital structure decision of a firm and the financial market.

3. SBS Corp is considering restructuring its capital to increase its value. The company is a power utility provider. What in your opinion is the best capital structure for the company?

4. Explain how firms attempt to signal information with their capital structure decisions?

5. SDI Corp is considering issuing new shares within the next 6 months for their expansion program. With the current stock market being very uncertain, explain how SDI can reduce its risk of the issue by using derivative instruments and still get their target funds.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9877641

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