Economics · Merchant Banking
Project Counseling is a specialized service provided by Merchant Bankers to corporate clients. In this context, which of the following best describes their advisory role regarding the financial parameters of a new venture?
- 1Directly providing long-term equity or venture capital from the investment bank's own proprietary capital reserves.
- 2Acting as the primary engineering contractor for physical infrastructure construction and plant machinery procurement.
- 3Assisting the client in conducting techno-economic feasibility studies and determining the optimal debt-equity ratio.✓
- 4Guaranteeing the repayment of principal and interest to the lending commercial banks if the venture fails.
Correct answer
Assisting the client in conducting techno-economic feasibility studies and determining the optimal debt-equity ratio.
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