Questions
Questions
Multiple choice

Which of the following statements are true about the choice of project structure (select all that apply):

Options
A.Equity holders are among the last investors to receive payment from the project cash flow when financed through project finance
B.Companies select corporate finance over project finance when facing high exposure to risk with large projects
C.Companies have more control over projects and funding with corporate finance structure
D.Project finance is mostly used for large projects
View Explanation

View Explanation

Verified Answer
Please login to view
Step-by-Step Analysis
In evaluating the statements about choosing a project structure, it’s helpful to compare how project finance and corporate (or traditional) finance affect risk, control, and funding for projects. Option A: 'Equity holders are among the last investors to receive payment from the project cash flow when financed through project finance.' In project finance, a typical waterfall prioritizes debt service to lenders first, then other obligations, with equity providing......Login to view full explanation

Log in for full answers

We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!

Similar Questions

Why are long-tenor loans critical for large infrastructure projects?

A project finance bond in the corporate world is very similar to a toll road bond in the municipal world.  True or False?

When it comes to choosing a structure and funding - which statements are correct (select all that apply).

What did we learn from the case study about BP Amoco approach when it comes to deciding whether or not to choose project finance model for their projects? Select all that apply.

More Practical Tools for Students Powered by AI Study Helper

Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!