Please answer clearly and do not copy and paste from the other answers!!!

THE FINANCING DECISION The financial managers second responsibility is to raise the money to pay for the investment in real assets. This is the financing decision. When a company needs financing, it can invite investors to put up cash in return for a share of profits or it can promise investors a series of fixed payments. In the first case, the investor receives newly issued shares of stock and becomes a shareholder, a part-owner of the firm. In the second, the investor becomes a lender who must one day be repaid. The choice of the long-term financing mix is often called the capital structure decision, since capital refers to the firms sources of long-term financing, and the markets for long-term financing are called capital markets.

Within the basic distinction issuing new shares of stock versus borrowing money there are endless variations. Suppose the company decides to borrow. Should it go to capital markets for long-term debt financing or should it borrow from a bank? Should it borrow in Paris, receiving and promising to repay euros, or should it borrow dollars in New York? Should it demand the right to pay off the debt early if future interest rates fall? The decision to invest in a new factory or to issue new shares of stock has long-term consequences. But the financial manager is also involved in some important short-term decisions. For example, she needs to make sure that the company has enough cash on hand to pay next weeks bills and that any spare cash is put to work to earn interest.

Such short-term financial decisions involve both investment (how to invest spare cash) and financing (how to raise cash to meet a short-term need). Businesses are inherently risky, but the financial manager needs to ensure that risks are managed. For example, the manager will want to be certain that the firm cannot be wiped out by a sudden rise in oil prices or a fall in the value of the dollar. We will look at the techniques that managers use to explore the future and some of the ways that the firm can be protected against nasty surprises.

Are the following capital budgeting or financing decisions?

Explain clearly complete the theory related to the questions 1). Intel decides to spend $500 million to develop a new microprocessor. 2). Volkswagen decides to raise 350 million euros through a bank loan. 3). Exxon constructs a pipeline to bring natural gas on shore from the Gulf of Mexico. 4). Pierre Lapin sells shares to finance expansion of his newly formed securities trading firm. 5). Novartis buys a license to produce and sell a new drug developed by a biotech company. 6). Merck issues new shares to help pay for the purchase of Medco, a pharmaceutical distribution company.