Problem
Considering the paper HOW DO CFOS MAKE CAPITAL BUDGETING AND CAPITAL STRUCTURE DECISIONS? by John Graham and Campbell Harvey, Duke University*
Write an essay (max 6 pages, excluding, cover page, abstract, references. annexes) addressing the following topics alongside the document to be uploaded both in word format and in pdf format using the template for academic documents.
The essay should begin with your view on the paper by Graham and Harvey (2002) - max. 2 pages.
Include references to more recent studies on capital budgeting metrics and decision criteria.
Topics to be addressed (after you provide your view on the paper)
A. Provide a brief summary of the factors the authors consider relevant for capital budgeting decisions.
B. Which topics addressed by the authors have been analyzed in the Financial Management course and from your perspective which ones should have beeen analyzed. Justify your answer.
C. Do you consider the results deployed by Graham and Harvey (2002) still apply? Justify your answer providing the theoretical underpinnings.
D. Provide some colour on the conflicts between shareholders and managers in what refers taking up risky projects.