Question

Why use case studies to evaluate “Problems in Corporate Finance?” – in your response include one example of a type of “(real world) Problem in Corporate Finance.

Answer 1

We are using the case study in order to evaluate the problem in corporate finance because case study will be helping us by learning through others mistake and it will also help in understanding the complex scenarios so one should be trying to undertake the case studies for various kinds of references during corporate finance because corporate finance is related to a large number of decision making process which will be supported by case studies in better decision making because it will be helping us what to do and what not to do as indicated by various past trends.

one of the real world problem in corporate finance is to estimate the rate of discounting related to various projects and these projects are often operated on a multinational level so companies are often finding it difficult to find the appropriate rate which are highly futuristic in nature and they cannot be predicted precisely so they will be trying to use various analytical methods in order to determine the rates to discount the value of cash flows associated with projects.