Course name: Financial management in construction

Individual assignment

Maximum Load =10%

1. What is risk and why is it an important issue for investment decision making?

2. Discuss Sensitivity analysis and Scenario analysis in financial management

3. Explain why dividends should have no effect on shareholder wealth in a world

of perfect and efficient markets.

4. Discuss the limitations of ratios as a tool of financial analysis.

5. Why is the net present value method of investment appraisal considered to

be theoretically superior to other methods that are found in practice?

6. Identify the problems that smaller businesses experience in raising finance

and describe the ways in which they may gain access to long-term finance.