(Peterson & Fabozzi 2002). Differences in tax laws could also make it advantageous for firms to restructure their capital budget to show income and expenditures in the nations that have the most favorable tax incentives for such transactions, and can also heavily influence where capital is stored based on interest growth tax rates (Peterson & Fabozzi 2002). Transfer pricing also takes place with both parties attempting to maximize their return, agreeing on certain currencies of exchange, adjustment procedures, etc., contributing in no small way to the strategic budgeting and financing of a firm (Peterson & Fabozzi 2002; Vishwanath 2007). Strategic decisions that take into account non-financial consideration can also greatly influence capital budgeting structures, such as the various methods of...

auto manufacturers recently underwent.
3. In addition to quantitative factors, financial managers need to examine non-quantitative market forces such as changes in technology, increases (or decreases) in competition, and long-term industry prospects. All of this can help to determine when increasing debt loads is advantageous for growth, or when capital should come primarily from equity to shelter the firm. These decisions can be enormously influential in the ultimate success of the company form a financial viewpoint, despite the fact that they can be complex and outcomes are often unpredictable.

References

Peterson, P. & Fabozzi, F. (2002). Capital budgeting. New York: Wiley.

Vishwanath, S. (2007). Corporate finance. Thousand…