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a) What is the difference between debt and equity and provide real-life examples?

How do they relate to financial risk? Explain in detail

b) If you were raising capital for business, which method would you choose to utilize (debt and equity)?

c)Also explain their impact on decision-making and planning process in finance.

d) Why do you prefer this method and which method of financing do you think is more expensive, explain?

e) From investors viewpoint which of them (issued by the same company) is deemed to be safer, reason out?

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a) Extensively discuss efficient market hypothesis and the 3 forms of

market efficiency viz, strong form efficiency, semi-strong form efficiency, and weak form efficiency. Which do you believe to be true for the US equity model and why, give reasons?

b) Explain market efficiency and efficient market hypothesis and describe the following:

i. Assumptions of Efficient market hypothesis.

ii. Forms of efficient market hypothesis and the implications of each form to fundamental analysts

iii. Implications of Efficient Market Hypothesis to financial decision makers.

c)What form, if any, of the Efficient Market Hypothesis do you think exists? Why are they important? How would investing going forward would be beneficial?

d)Explain the implications of the efficient market hypothesis for investors who buy and sell stocks in an attempt to "beat the market"?

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a)Define Payback period & pros and cons of the payback period method?

b)Define the payback period method in capital budgeting and state the payback period decision rule.

c)Discuss payback period and explain its primary advantages and disadvantages of the method.

d)Explain how lenders and investors make investment decisions using payback period tool.

e) What is the payback period of the following project?

Initial Investment: $50,000

Projected life: 8 years

Net cash flows each year: $10,000

f)Describe the discounted payback period. How is it calculated? What is the criterion rule? What are the advantages and disadvantages?

g)Explain the payback period model and its two significant weaknesses. How does the discounted payback period model addresses one of the problems?

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a)Pls define and explain how each of the following is used in corporate finance and support your answer with examples:

-nominal interest rate (NIR)

-effective annual interest rate (EAR).

b)What effect does compounding interest more frequently than annually have on its future value and the effective annual rate (EAR)

c)what is the difference between EAR & NIR

d)what is the Nominal Interest Rate, and the Effective Annual Interest Rate for the following problem - A loan is being offered to you that charges 2% per month.