Fundamentals of Corporate Finance Chapter 25 What We Do and Do Not Know About Finance Fifth Edition Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All rights 25- What We Know Net Present Value Risk and Return Efficient Capital Markets MM’s Irrelevance Propositions Option Theory Agency Theory McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All rights 25- What We Do Not Know What determines project risk and PV ? Risk and return - Have we missed something? Are there important exceptions to the efficient market theory? How can we explain capital structure? How can we resolve the dividend controversy? How can we explain merger waves? What is the value of liquidity? McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All rights .. .25- What We Know Net Present Value Risk and Return Efficient Capital Markets MM’s Irrelevance... Agency Theory McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All rights 25- What We Do Not Know What determines project risk and PV ? Risk and return - Have we missed... can we resolve the dividend controversy? How can we explain merger waves? What is the value of liquidity? McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All rights