It is always better to finance long term projects with


1) A project with a positive NPV increases the value of a firm. Explain how this occurs. 

2)The cost of capital should reflect the level of risk of the firm. 

Do you agree with the above statement? 

3)It is always better to finance long term projects with equity rather than debts. Discuss. 

4)Convertibles securities add value to firms using them. Discuss.

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Financial Management: It is always better to finance long term projects with
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