I need a 1-2 page answer for this assignment, it is due by the end of today.

Assignment # 2 72-271 Fall 2015 After carefully comparing the different forms of financing used by Canadian companies in the bar charts below; answer the following questions: 1. What is the major form of financing used by Canadian companies? 2. The pecking order theory of corporate financing is used to explain the financing preference of companies in Canada. Using the principal agent model explain the pecking order theory. 3. What explains the fluctuation in the amount of financing raised by companies in the different years. 4. In the figure above, in all the years (except the year 2000) companies prefer debt over equity. Why? 5. Debt can be used as a signal to bridge the information asymmetry between shareholders (principals) and manages (agents). Explain. 6. Summarise the agency problem. Explain why the agency problem arises between principals and agents (hint: principals and agents face different types of risks). 7. Summarise the different types of corporate governance mechanisms used to bridge the incomplete contracts between shareholders and managers. 8. Compare angel finance with venture capital. At what stages of its growth is a start-up likely to seek these forms of financing? 9. Compare operational risk with financial risk. Which type of risk likely to be affected by the changes in capital structure of a company? 10. How does the amount of debt impact on the company value? Explain using the concept of tax shield