Assignment:
CORPORATE FINANCE. Eighth edition from: Ross. Westerfield. And Jaffe.
ISBN 978-0-07-310590-1
MHID 0-07-310590-2
Part of
ISBN 978-0-07-333718-0
MHID 0-07-333718-8
Please answer each of the following questions using the short answer format. The ideal responses for each question will be free of writing errors and must include academically valid course material citations in APA format to link responses to text concepts. Include a Reference page.
Question 1. Explain the use of at least two financial decision-making techniques utilized in capital budgeting. What are at least one strength and weakness of each technique? The response may include the lease-versus-buy decision.
Question 2. Select one approach to arriving at the cost of capital as it relates to the optimal capital structure of the corporation. Provide the rationale as to why this approach is applicable in certain situations.
Question 3. Describe the similarities and differences in issuing bonds and stocks into the primary market.
Question 4. Provide at least two different rationales with respect to an organization's dividend policy.
Question 5. When do the following make sense for an organization and when do they not make sense (mergers, acquisition, and bankruptcy)?