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Novo Industri A/S1. Characterize Novo’s financing strategy prior to 1981. What, if anything, appears to have been the company’s primary concern in its financing decisions from 1974 through 1980? What financing strategy would you recommend for the future?2. What are preemptive rights issues, and how do they typically work? Why might Novo have relied so heavily on right issues as a means of raising capital between 1974 and 1980?3. What advantages do debt and equity market outside Denmark offer Novo? Do they present any disadvantages as source of capital?84. Evaluate the three financing alternatives facing Novo in early 1981 with respect to:a) Their effect on Novo’s cost of capitalb) Their dilutive impact on Novo’s existing shareholdersc) Novo’s future ability to raise capital5. What should Novo do?