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All of them pls a) Discuss fully the factors that affect the business risk of a company. Use the examples of a stock market listed
All of them pls
a) Discuss fully the factors that affect the business risk of a company. Use the examples of a stock market listed pharmaceutical company and a private countrywide chain of restaurants to illustrate your answer. (7 marks) (b) Identify and discuss fully the factors that a company should take into consideration before it takes on financial risk. (8 marks) (c) Companies in the real financial markets don't have 100% debt in their capital structure. Discuss fully the factors that work against companies having 100% debt in their balance sheet, as suggested in Modigliani and Miller with taxes. (8 marks) Which of book value or market value figures are used in the following situations: () Lenders looking to advance money to a company (11) The WACC calculation Explain why they are used? (7 marks) Step by Step Solution
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