Question

For which type of financial decision did you undertake an analysis for ABC Limited? a. Investment...

For which type of financial decision did you undertake an analysis for ABC Limited?
a. Investment decision
b. Financing decision
C. Dividend decision
d. Both investment and financing decisions

Homework Answers

Answer #1

d. Both investment and financing decisions.

For any entity investment and financing decisions require an elaborate analysis of the cash inflows, outflows, feasiblity of the project, financial viablity of the product etc.

Investment decisions mainly focus on determining whether the project is financially viable.

Financing decisions focuses on the amount that can be borrowed or can be raised as equity, benefits of leverage, tax benefits on interest expense etc.

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