Since the investment and financing decisions are analyzed separately, the financial manager can completely ignore investors and financial markets when analyzing capital investment projects.

Question

Quizplus · Accepted Answer

The financial manager cannot completely ignore investors and financial markets when analyzing capital investment projects as these decisions can impact the company's ability to raise capital and its cost of capital. Therefore, the financial manager must consider external financing sources and the potential impact on the company's stock price and investor perception.

Since the Investment and Financing Decisions Are Analyzed Separately, the Financial