- What are the impacts on earnings if a company builds a new factory using debt? operating lease? capital lease? cash?
- When would you take a project with a negative NPV?
- How would you value a company without earnings, i.e., tech stocks?
- How do you go about determining how much products we're going to sell each year? (imagine a company like Apple)
- Suppose that you constructed a for a company and the estimate for external funding required was negative. How would you interpret this result?
- How will a decrease in financial leverage affect a company's cost of equity capital, if at all? How will it affect a company's equity beta?
I am not an expert with accounting to begin with so these 2 questions are quite a problem to me, especially the second one since I thought we should only undertake projects that have a positive NPV?