Question: Which one is the best method for estimating a share's expected return? Why? What are the effects of financial leverage? Why risk of shareholders increases

  1. Which one is the best method for estimating a share's expected return? Why?
  2. What are the effects of financial leverage? Why risk of shareholders increases as the firm's financial leverage rises?
  3. Define and differentiate between issuing bonus shares and conducting share split. Are they both forms of payment by the company? Explain.
  4. . When can an investor beat the market? Explain your answer with the concept of efficient market hypothesis.
  5. What a company can signal to their investors by using dividend policy?
  6. According to Modigliani and Miller Propositions, Why increasing leverage affects the cost of equity?
  7. Why companies' issues bonus share? How share split help companies in increasing the volume of trading shares in the market?
  8. Why most of the airlines company use leasing instead of buying the aircrafts?
  9. What are benefits a public company can enjoy compared to a private company? Why there are some of the largest companies are still in private ownership?
  10. It is important to focus on cash flow in capital budgeting analysis. Explain your answer with the concept of efficient market hypothesis.

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