“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?
“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?
Why is capital structuring decisions in evaluation project cash flows ignored? How is capital structuring in project evaluation treated?
“If markets aren’t capable, financial managers would find it extremely complex in taking rational decisions”. Discuss.
Discuss and illustrate the importance of financial restructuring and asset restructuring in creating value.