Part A

Discuss the competitive sources of positive NPV focusing on the strategic positioning and unique resource capabilities of the firm (5 marks)

Part B

With reference to the Competitive Analysis approach, discuss the connection between a firms competitive advantage and the possibility of a positive NPV. (5 marks)

Part C

Explain the relationship between change in leverage and the impact on the firms PE ratio. Answers should cover both increase and decrease in leverage. (5 marks)