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A: Annuity Series of equal payments occurring at equal interval of time is known as annuity.
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- What is the biggest disadvantage to be considered when exploring the option of equity financing versus debt financing?From an investors perspective what are the pros and cons of equity financing? Please discuss.Should a firm use debt instruments as a financing option, what are its effects on the firm’s expected return and risk?
- If a firm expects to have additional financial requirements in the future,would you recommend that it use convertibles or bonds with warrants?What factors would influence your decision?• Having researched derivatives for investment portfolios, is a need for them as hedging vehicles in corporate finance? If so, how would one incorporate derivatives in a investment program?
