Lecture
This lecture discusses financing, debt, equity, and investment decisions using a real estate development scenario. The instructor presents a case study where an investor must choose between two projects with different construction costs and rental incomes, highlighting the importance of considering not only the return rate but also the amount invested. The lecture delves into the concept of leverage, the impact of debt on project profitability, and the role of risk assessment in investment decisions. Through various examples and calculations, the instructor demonstrates how different financing structures can affect the overall return on investment and emphasizes the significance of diversification and risk management in financial decision-making.