Define the value of a firm might change

Assignment Help Financial Management

Reference no: EM13215061

Q1 (a) Critically explain how NPV, IRR and Payback can be used to appraise investments.

(b) Contrast the merits of these approach when capital is:

(i) Not rationed.

(ii) rationed.

Q2 (a) Describe how, in principles, the value of a firm might change as its leverage increases.

(b) Discuss why, in practice, firms might choose high levels of debt.

Reference no: EM13215061

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