Briefly describe each of the following phases of the capital budgeting process:
a) identification phase;
b) evaluation phase;
c) control phase; and
d) audit phase.
Would saving time by skipping one of the phases in the capital budgeting process be a costly financial mistake? Explain.
Identify three market variables whose value affects the financial market value of a company.
State whether an increase in the value of each variable would increase or decrease the financial market value of the firm.
Is it efficient for financial managers to adjust their business practices to important changes in market conditions? Explain.