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.