Capital budgeting is a vital part of a firm’s decision-making. Each approach will provide a piece of information to help analyze potential projects to make informed decisions.
Question 5: Capital Structure Decisions
Examining the effects of a company’s financial leverage on stock prices, earnings per share, and the cost of capital is important to a firm’s capital structure.
Question 6: The Firm’s and Your Personal Capital Structure
Take control of your money! This concept is extremely important because it can influence a company’s return and your capital structure.
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