Welcome to the discussion of week 4.

Analyze, discuss, controversies, or simply differ from the following statements (Explain why this or not agree - Use a counterexample to distort the statement if it is your final consideration).

a. "The real drivers of value lie in improving the performance of current operations, investing in projects whose performance exceeds the cost of capital, disinvest in those operations that destroy value and make smart use of debt to lower the cost of capital".

b. Even if the firm covers all costs, the "Economic Equilibrium Point" does not take into account the value of money over time.

c. With regard to mergers between companies, ...." Beyond calculations of synergies and benefits, companies must pay close attention to integration and subsequent planning.

References: Stephen Ross, Randolph Westerfield & Bradford D. Jordan. (2007). Fundamentals of Corporate Finance Alternate Value 8th Edition. McGraw-Hill.