principle of finance 25

answer the questions:

  • Abeer Inc. has debt claims of $400 (market value) and equity claims of $600 (market value). If the after-tax cost of debt financing is 11 percent and the cost of equity is 17 percent, then what is Abeer’s weighted average cost of capital?
  • What is the strategic role of venture capital in developing entrepreneurship in Saudi Arabia?
  • (a) Under what conditions do you think that the finance manager does not have to think about capital structure issue?
  • Discuss the various modes of recent issue of IPO by Saudi Aramco company?

(b) Discuss the various factors affecting the capital structure decisions giving appropriate examples.