In: Finance
Question 2: Discuss various types of capital budgeting techniques. Also identify the most appropriate technique and justify with logical reasoning. Question 3: It is commonly recommended that the managers of a firm compare the performance of their firm to that of its peers. Increasingly, this is becoming a more difficult task. Explain some of the reasons why comparisons of this type can frequently be either difficult to perform or produce misleading results. Question 4: List and describe the three general areas of responsibility for a financial manager. Question 5: The managers of a firm wish to expand the firm's operations and are trying to determine the amount of debt financing the firm should obtain versus the amount of equity financing that should be raised. The managers have asked you to explain the effects that both of these forms of financing would have on the cash flows of the firm. Write a short response to this request.