a) Other things being equal, why a bond issue more likely to be cheaper than a term loan? Why, then, do not more Australian companies issue bonds?

b) What limitations are placed on an overseas firm that wants to take over an Australian business? Explain with example.

c) What legal restrictions may limit the amount of dividends to be paid? Why do many companies adopt a dividend reinvestment scheme? Briefly explain your answer.

d) What are the similarities of the difference between risk-adjusted discount rate methods and the certainty equivalent method for the incorporating risk into the capital budgeting decision? Explain your answer.

e) What is meant by the investor's required rate of return? How do we measure the riskiness of a security such as a company share? Explain your answer

f) Why is book value alone an imperfect measure of the worth of a company? Explain your answer.