1. Assume you are a financial manager in a firm and looking at ranking various possible projects. List one factor you should consider in this decision.
2. For a company that has been on net loss for the past ten years, would a share price derived from Residual Income Model be a good choice? if yes/ no why?
3. We buy a 10 year, 7% bond rates are 12% and sell it when they are 16% in 8 years. What is the price we sell it at and buy it at?