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1. Financing decision is an important component in financial decision. Relevant tools and methods are desperately needed especially when companies are contemplating with financial difficulties.

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1. Financing decision is an important component in financial decision. Relevant tools and methods are desperately needed especially when companies are contemplating with financial difficulties. In view of this, you are required to elaborate further as to why companies fail to meet cost optimality in financing activities. Give real life examples. [40 marks]

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