problem 1:
“Risk of diversified portfolio is much lower than the risk of less-diversified portfolio”. What is the relevance of this statement to finance managers who’re measuring commercial projects?
problem 2:
“There is no universal answer to the problem of impact of debt on value of firm”. What are the cost and benefits of using debt in capital structure?
problem 3:
Why is capital structuring decisions in evaluation project cash flows ignored? How is capital structuring in project evaluation treated?
problem 4:
“If markets aren’t capable, financial managers would find it extremely complex in taking rational decisions”. Discuss.
problem 5:
Discuss and illustrate the importance of financial restructuring and asset restructuring in creating value.