Debt is the most effective way to mitigate agency problem. To what extent are you agree? Question 2 Bankers have been using Net Present Value (NPV) to evaluate projects in their loan proposals. They concerned that the NPV evaluation is not perfect. You are required to provide eight (8) reasons to address their concerns. Question 3 Why are most of the investment bankers inclined to underprice Initial Public Offering (IPO)? Question 4 Financial stakeholders are crucial to companies for fund raising. However, companies shall not ignore the interest of non-financial stakeholders in determining their optimal capital structure. Discuss the validity of this statement. Question 5 Shareholders embarks on spin-off strategy to enhance their value. Discuss with diagram the mechanism of spin-off strategy and the four (4) ways it could help shareholders to achieve their value enhancement objective