Revolutionizing financial management: New insights on investment and financing decisions
The article discusses how companies make decisions about investing in projects and how to finance those investments. It covers methods like net present value and internal rate of return to evaluate projects, as well as factors like risk and expected return. The researchers also look at how companies decide on their capital structure, including the mix of debt and equity. They explore how these decisions can be influenced by factors like taxes and overseas investments. Ultimately, the article provides insights into how financial decisions are made in practice.