Question: a) Explain why issuing a bond is a better choice for a firm compared to a bank loan, especially when the firm has to invest

a) Explain why issuing a bond is a better choice for a firm compared to a bank loan, especially when the firm has to invest in a project with a huge investment outlay. Provide examples to support your answer.

b) Market interest rate and maturity of the bond have a negative relationship with the value of bond. Do you agree (or disagree) with the statement? Explain your answer with examples.

c) Explain the difference between incremental cash flow and non-incremental cash flow. Give examples to support your answer.

d) Explain the difference between the discounted cash flow method and multiplier method in stock valuation? Please explain the advantages and disadvantages of each method. Provide examples to support your answer.

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