1. What are the components of a working capital? Is it important? Why or why not?  2. What is the effect of the Current Ratio to the company’s operation?

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: What is the importance of a pro forma income statement to a firm?

A: Pro forma is referred as the sake of form. It is used to represent the information in a formal…

Q: QUESTION 2 Which of the following statements is false O A positive net working capital is desirable…

A: The income statement and balance sheet are the important financial statements of the business. The…

Q: How does the "Net Operating Working Capital"  differ  from    "Net Working Capital "? (write only…

A: Net Operating Working Capital: It is the difference between the total long period assets and total…

Q: 14. The indicators characterizing the business activity of the enterprise do not include: a) the b)…

A: Since you have posted multiple  questions, we will solve first question only that is question no 14.…

Q: 1. Download the financial statements of any company and do the following analysis? a) Calculate and…

A: Gearing ratios are referred to as the financial ratio, which used to compare an owner's equity to…

Q: id-in-capital and retained earnings: Similar? Different? What are the main categories of paid-in…

A: It is usually split into two different line items: common stock (par value) and additional paid-in…

Q: What is a working capital, and how does it differ from other types of capital? What role does it…

A: Business process are the sequential steps followed by the stakeholders to reach a certain goal. Each…

Q: what is the difference between paid in capital and retained earnings

A: The paid in capital and retained earnings are the part of statement of shareholders equity.

Q: .Explain the importance of capital structure to a company

A: Capital structure means identifying the best mix of equity and debt in a company that maximizes the…

Q: Networking capital refers to the    A) firms investment in total assets B) firms' investment in…

A: There are various heads of balance sheet including current assets, total assets etc

Q: A)Calculate the following ratios: • Return on Capital Employed (ROCE) • Current Ratio • Gearing…

A: = Earnings before interest and tax ÷ (Total assets - current liabilities)    For Riccarton pic: ROCE…

Q: What are the financial resources of the company which are also called working capital

A: Financial resources is a term covering all financial funds of an organization. They are part of…

Q: Is cost of capital set by investors or managers?

A: Cos of capital (Coc) is rate of return required to make capital budgeting decisions for example,…

Q: Which is more important to a company capital or O&M? Why?

A: Capital Expenditure Capital expenditure is one of the important  factors of the company.  It is the…

Q: Under what assumptions market value of a company does not depend on its capital structure

A: One important concept in Modigliani and Miller theorem that market value does not depends on the…

Q: Why do some companies use gross book value instead of net book value to measure a division’s…

A: Return on investment (R01):   This financial ratio evaluates how efficiently the assets are used in…

Q: how

A: M and M has given the theory of valuation of firm with no taxes and with taxes

Q: How do the types of assets used affect a firm’s capital structure?

A: There are 2 types of assets, fixed assets and current assets. Fixed assets have life for long period…

Q: Describe about retain earning and paid in capital.

A: Retained earnings: “Retained earnings” are that portion of profits which are earned by a company but…

Q: How do flotation costs affect the cost of capital?Are these costs about the same for each of…

A: Floatation cost is the cost that company incurs while issuing new equity. It makes new equity…

Q: What are the advantages and disadvantages of a company raising capital through the issuance of…

A: Equity is the owner’s share of capital in the company.  Equity share capital is the owned capital.…

Q: What are the different types of capital requirements that should be considered while estimating the…

A: Capital means the cash or assets which are used to be run or setup the new business and pay their…

Q: Describe the method of determining the Company Cost of Capital?

A: Firms often operate their company using the capital generated from different sources. That involves…

Q: Explain what is meant by the term ‘cost of capital’.

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The most appropriate weights to use in calculating a firm's cost of capital are the proportions of…

A: 1. The most appropriate weights to use in calculating a firm's cost of capital are the proportions…

Q: Why is the WACC (weighted average cost of capital) important? When is it useful to a company?

A: Weighted average cost of capital is important to determine the minimum required return of all the…

Q: Describe the process of calculating the Company Cost of Capital?

A: Firms often operate their company using the capital generated from different sources. That involves…

Q: How can a company raise capital

A: A corporation or a company is a separate entity that is established legally and is identified as a…

Q: The ratio sales to working capital is a measure of

A: Working capital turnover  ratio is a measure to determine how efficiently a Company's working…

Q: What is Hedging principle and how it can be used to manage the working capital of the firm?

A: Investment in current assets has been used to fund the company's working capital requirements.…

Q: Describe the process of determining the Company Cost of Capital?

A: Cost of capital : It is that rate of return company has to pay to raise the capital to start a…

Q: e detail about The weighted average cost of capital up to the point when retained earnings…

A: Since retained profits are more costly than debt and preferred stock, the cost of capital will…

Q: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: A firm's capital structure can be determined by examining which parts of the firm's balance sheet?…

A: A firm capital structure is generally consist of long term debt ,preferred stock and equity . A firm…

Q: Which of the following is not an element of working capital? a. inventory b.property, plant and…

A: The question is multiple choice question  Required  Choose the Correct Option