helpQUESTION $6$

a$.$ Suppose that an internet$-$based program, Novus, wants to raise $$10$ million to

expand its business operations. Describe how Novus can raise these funds

directly through each of the follow options: issuing stock, issuing bonds, or

obtaining a bank loan.

Compare and contrast these three options. $(10$ marks$)$

b$.$ The investment, dividend and financing decisions are interrelated. Discuss their

relationship. $(5$ marks$)$

c$.$ With example, describe the concept of right issue. $(5$ marks$)$

d$.$ Zhen Yi Computers has an outstanding issue of bond with a par value of $$1,000,$

paying $12$ percent coupon rate semi$-$annually. The bond was issued $25$ years ago

and has $5$ years to maturity. What is the value of the bond assuming $14$ percent

rate of interest?