Having covered to the large extent of the corporate financing mix between debt and equity, there are still a lot of questions asked about what the right choices will be. Some finance managers conclude that the right choice should be able to answer the following 3 questions:

1. Does the companys financial policy create value for the firm?
2. Does the companys financial policy create a competitive advantage?
3. Does the companys financial policy sustain senior managements visions?

Do you agree with the above hypothesis and why?