1)What are the key factors on which external financing depends, as indicated in the AFN equation?2)How is the financial plan related to the other parts of a firm’s overall strategic plan? How can the financial plan be used to help management provide guidance to security analysts?3)Do mergers create value, if so who profits from this value?4)What is a joint venture? Give some reasons joint ventures may be advantageous to the parties involved.5)Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the likelihood of governmental intervention and (b) possibilities for operating synergy.6)Why do some investors prefer high-dividend-paying stocks? Why might other investors prefer low-dividend-paying stocks?7)Why might market conditions cause a firm’s actual capital structure to vary from its target level?