ESSENTIALS OF MANAGERIAL FINANCE BRESLEY & BRIGHAM 14th EDITION QUESTIONS

Chapter 9

What is capital budgeting? What are the techniques we may apply for taking capital budgeting decisions? Explain the limitations of pay-back period and ARR techniques. Why NPV is considered as the superior technique over IRR.

Chapter 11

What types of capital do firms use to finance in investments? What is the cost of Capital? Why is the after-tax cost of debt rather than the before-tax cost of debt is used to calculate the weighted average cost of capital? What is the logic behind using weighted average cost of capital?

Chapter 12

What is a firms capital structure and optimal capital structure?. Why does earning consider as the significant role player for determining optimal capital structure? Explain with an example. What is leverage? How can information about a firms leverage position be used to determine its optimal capital structure?

Chapter 13

What is dividend? Explain the types of dividend. Briefly describe the types of dividend policy and which one you follow for striking the balance between the current satisfaction of the shareholders and the future growth of the organization. Differentiate between dividend relevance theory and dividend irrelevance theory. What factors affect dividend policy decisions?