Explain why the use of EVA fixes the equity cost problem with EPS accretive projects (with negative NPV), and also the back-loaded projects problem? (2 marks for discussion on each problem)

Discuss why Gordon Growth Model cannot be used to estimate the share price of high growth firms? (2 marks). What method do you recommend for high growth firms share price estimation, except Discounted Cash Flow method? (2 marks)

Explain in detail why issuing convertible bonds, compared to ordinary shares, reduces the required rate of return by venture capitalist and private equity investors? (3 marks for at least two well explained reasons including the effects on beta, and risk perceptions of investors)