Benefits of using debt finance instead of equity

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1. Why would a firm not undertake a project when the NPV from their capital budgeting analysis is less than zero (0)?

2. Discuss the benefits of using debt finance instead of equity?

3. Knowledge Limited has a Beta of 0.8 compared to the market Beta of 1.0. When the overall share market increases what you expect to happen to the price of Knowledge Limited?

Reference no: EM131803791

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