Hello sir, may I ask growth opportunity is that refers to the company has the projects that can generate a positive net present value???
Is that possible to have situations where growth opportunity will not affect capital structure? If yes, how will it be?
Thankss Sir
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6y ago#1A growth opportunity will not necessarily result in an a positive NPV - it depends on what the potential growth is.
As far as the capital structure is concerned, it depends on how they intend to finance the new project.
If you are referring to a specific question then say which one and then I will be able to explain more, depending on the circumstances in the question.
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