2. Short answer questions. [2 points each] (1) Why should companies prefer to issue debt rather than equity if internal financing is insufficient? (2) Why
2. Short answer questions. [2 points each]
(1) Why should companies prefer to issue debt rather than equity if internal financing is insufficient?
(2) Why do we care about WACC?
(3) Why do shareholders of a company with poor quality of corporate governance demand high payout, whenever possible?
(4) Why does capital budgeting eventually impact the cost of capital?
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Authors: William O. Cleverley, James O. Cleverley, Paula H. Song
7th Edition
0763789291, 978-0763789299
