1. Defining and quantifying risk as used I capital budgeting analysis
2. How does EBIT/EPS analysis allow financial managers to determine the capital structure of the firm?
3. What advantages do Financial Leases offer?
4. What benefits accrue to a company by going public?
5. Where does a company look for private placement funds?

1. Risk in general terms means exposure to loss. In capital budgeting terms it can be categorized as; Diversifiable Risk, Un diversifiable risk
The Un-diversifiable risk is the one that is there, it cannot be diversified away from the project/portfolio undertaken. The Diversified Risk can be reduced. Note one cannot eliminate risk fully, it be reduced to acceptable levels by using effective capital budgeting schemes, e.g, in the context of banks; banks engage in active risk management programs. Holding fixed its capital structure, there are two broad ways in which a bank can control its exposure to risk. First, some risks can be offset simply via hedging transactions in the capital market. Second, for those risks where direct hedging transactions are not feasible, the other way for the bank to control its exposure is by altering its investment policies.

2. EBIT stands for Earnings before Interest and Tax. It allows the financial statements users to analyze the position of the company before the payment of any taxes and Interest. EBIT can be compared with the EBIT of a similar company or year on with the Company’s own EBIT, to analyze the rate of growth.