Questions
Multiple choice
Which of the following statements are true for traditional and project finance (select all that apply):
Options
A.Project finance can help disguise the level of shareholder debt
B.Risk and cost are often the primary factors when deciding whether or not to use project finance
C.Investors have more visibility into financial aspects of project with project finance than with corporate finance
D.Investors have less visibility into financial aspects of project with project finance than with corporate finance
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Step-by-Step Analysis
Question focus: traditional and project finance, with multiple select options to evaluate.
Option 1: 'Project finance can help disguise the level of shareholder debt' — This is a known feature of some project-financed arrangements. Because the financing is secured against a specific project’s assets and contracts rather than the sponsor’s balance sheet, debt can appear to be at the project level rather than the corporate level, effectively mas......Login to view full explanationLog in for full answers
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