Universal Principles versus Culturally Determined Norms Explain whether the following financial tasks are actually guided by universal principles or culturally determined norms:

a. Calculating the discount rate to be used in a capital budgeting analysis

b. Determining the optimal mix of debt and equity for a firm's financial structure

c. Establishing what proportion of net profits is to be distributed to share- holders and what proportion is to be retained by the firm for future growth needs (dividend policy)