Answer these questions, thank you!
1. Discuss some advantages and disadvantages of debt vs. equity financing. Discuss how excess debt financing becomes dangerous during periods of financial/economic instability, e.g. Global financial crisis, current pandemic.
(9 points)
2. What is underpricing? Discuss how underpricing varies with time, market conditions and from country to country. Discuss the main theories/reasons/factors that explain underpricing.
(9 points)
