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Discuss capital rationing and soft rationing

Assignment Help Financial Management
Reference no: EM13970392 , Length: 2000

Please kindly provide quality answers as per the requirements.

Each answer MUST provide:

1) graphical illustrations;

2) examples; and

3) academic citations

Total Number of words for the whole assignment MUST within 2000words.

1.

(i) Explain the functions of financial markets.

(ii) Discuss why a dollar tomorrow cannot be worth less than a dollar the day after tomorrow.

2. (i) Discuss capital rationing and soft rationing.

(ii) What are some of the important points to remember while estimating the cash flows of a project?

3. (i) Discuss the certainty equivalent approach to estimating the NPV of a project. (ii) Discuss the problems associated with capital investment process.

4.

(i) Discuss the three forms of market efficiency and explain the basis for it.

(ii) Discuss some of the features that would increase the value of a corporate bond?

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All the problems has been solved in 4-5 Pages, Solution includes The functions of financial markets, types of rationing of funds; Capital Rationing and Soft Rationing, Certainty Equivalent Approach to estimating the NPV of a project, Three forms of market efficiency are weak, semi-strong and strong market efficiency. The basis of this distribution is the reflections shown by market to available and non-available information.

Reference no: EM13970392

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