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  1. What is a constant interest coverage policy and how does it impact the levered value of a project?

 

  1. Why should issuance costs and mispricing costs be included in the assessment of the project’s value? How do you include them?

 

  1. Why is it important to calculate the value of the interest tax shield if a firm adjusts its debt annually to a target level?

 

  1. For what reasons would a firm use a financial model in projecting future cash flows from an investment, and what are the primary factors to consider when making the cash flow estimates?
    • 11 years ago
    • 40
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