If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to carry out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.

Week 12 notes th March 30 Notes Monte Carol Simulation Use when decisions are made with random events Decision Tree: only random events with discrete outcomes o Discrete outcome=countable or limited number of outcomes Monte Carlo Simulation: random events w/ discrete and continuous outcomes o Continuous outcome=every possible outcome in a range o Can use parametric and structural sensitivity easily =RAND(x) function o Generates random number between 0 and 0.99999… o Re-calculates by pressing F9 (on PC) o Every number is equally likely (uniform distribution) o If make a histogram of 1000 trials of RAND fxn, all bars should be equal height Uniform distribution ou