I can not figure the less: cost of treasury

Q: “Capital budgeting has the same focus as accrual accounting.” Do you agree? Explain.

A:

Q: Vhat are the alternative forms of financial nflows?

A: Generally the concept of alternative finance is defined as the financing from external sources other…

Q: Which is more important from a finance perspective-net income or operating cash flow? What is the…

A: Net income is calculated in the income statement whereas and operating cash flows are calculated in…

Q: Why is budgeting assumptions not always accurate and others focuses on one area only like finance?

A: Budgeting assumptions are expectations typically expected or presumed income and expenses that are…

Q: Explain how inflation impacts capital budgeting analysis.  Why do we care? How is NPV impacted if…

A: Nominal rate and inflation rate are related to each other through real rate as shown below. Nominal…

Q: what are usefulness and weakness of discounted cash flow method?

A: Discounted Cashflow Method is the Method in which we compare Initial Project cost with expected…

Q: O Cash price less down payment equals

A: Cash Price minus Down payment = Amount Financed

Q: Cash surplus and economic assumptions are components of a financial planning model. True or False

A: Future is uncertain and it contains various risk factors. Financial planning (FP) model is used to…

Q: How is capital budgeting similar to security valuation? How is it different?

A: Capital budgeting is the process of evaluating various projects' net present value to arrive at a…

Q: t are the different kinds of capital budgeti

A: Capital budgeting: Capital budgeting refers to the process of deciding between the various…

Q: In a capital budgeting study, explain why sunk costs should not be included, but opportunity costs…

A:

Q: Explain and critically evaluate advantages and disadvantages of fiat money.

A: US dollar, Australian dollar, New Zealand dollar,..... are all fiat currencies , meaning that the…

Q: “Only quantitative outcomes are relevant in capital budgeting analyses.” Do you agree? E xplain.

A: “Only quantitative outcomes are relevant in capital budgeting analyses”. This statement is…

Q: Is capital rationing always a bad thing? Explain

A: Capital rationing: Capital rationing is restriction bestowed upon new investments in the…

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

Q: Fill in the blank: Money market is the source of _________ finance.

A: Money market is a highly liquid and safe market consisting of negotiable instruments like treasury…

Q: “Only quantitative outcomes are relevant in capital budgeting analyses.” Do you agree? Explain.

A: Capital budgeting- It is also known as investment appraisal. It is the process which every business…

Q: what are the differences between profit and cash?

A: Profit and cash are two quite related but two different things.

Q: What is the major advantage of using a fee-only financialplanner?

A: There are different types of financial planners to help investors plan their finances. Majorly,…

Q: O Payback does not consider the time value of money

A: Capital projects refer to a project which is helpful in maintaining and improving the asset of the…

Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don’tfirms use…

A: Spontaneous source of funds means source through which funds can be arises from daily business…

Q: What is off balance sheet financing?  Why do we care about it?

A: Financial statements can be defined as a summary of the financial performance of the business over…

Q: Why can closed-end funds sell at prices that differ from net asset value while open-end funds do…

A: An open-ended fund is the investment vehicle in which assets are pooled from diversified investors…

Q: 1. Which of the following capital budgeting techniques ignores the time value of money? (a) Payback.…

A: Since you have posted multiple questions, we shall be solving the first one for you. In case you…

Q: What is discounting and why do we discount future cash flows?

A: A cash flow statement is a financial statement that shows how much cash and cash equivalents are…

Q: What is off–balance sheet financing?

A: To keep the debt-to-equity and leverage ratios low, companies opt to record certain liabilities and…

Q: What is failure of competition?

A: The question is based on the concept of economic failure of market due to imperfect situation

Q: why is there a trade-off between liquidity and solvency?

A: A firm may raise capital through different sources, including equity shares, preference shares,…

Q: In capital budgeting, the Payback Method suffers from the problem of: No consideration to sunk costs…

A: Traditional methods: Payback period: This method is used to calculate how many years a project will…

Q: What are some limitations of financial performance measures?

A:

Q: What are the strenghts and weaknesses of the discount cash flow methods?

A: discounted cash flow methods are used to calculate to find the future cash inflow discount into its…

Q: Money market does not have any role in the development of capital market

A: Money market is a market which deals in short term securities like treasury bills, bills of…

Q: What is the major criticism of the payback and simple rate of return methods of making capital…

A: Cash payback method: Cash payback period is the expected time period which is required to recover…

Q: What are the difficulties and problems when it comes to using the free cash flow valuation model

A: The free cash flow valuation model is one of the most used and one of the most popular valuation…

Q: Explain the term Money Management?

A: Answer: Money in the form of bank notes or coins can be described as a medium of exchange.

Q: What four fundamental factors affect required rates of return(i.e., the cost of money)?

A: The minimum rate that is expected by an investor from the investment made in a project is referred…

Q: Why does the use of debt lower the profit margin and the ROA?

A: Company needs to raise the fund to have the capital which needs for the business for multiple…

Q: Based on your understanding of the fAactors that affect the cost of money, Identify which of the…

A: Higher inflation rate would lead to higher interest or nominal rate on the borrowed amount. This is…

Q: Which is more important from a finance perspective - net income or operating cash flow? Why? What is…

A:

Q: According to the Liquidity Preferences Model, these are the expected first impact (short run) coming…

A: Liquidity preference hypothesis could be a demonstrate that proposes that a speculator ought to…

Q: Explain the traditional model of money demand

A: Demand for money is required for Private Consumption. It results in Gross Domestic Product. GDP is…

Q: What Is the term Actual-Dollar Analysis?

A: Dollar analysis is referred as the analysis of dollars by businesses and companies to compare the…

Q: Why do the payback period analysis fail to recognize the difference between the present and future…

A: Pay-Back (PB) Period is time in which Initial outlay related to proposed investment is completely…

Q: What are the weaknesses of the payback method?

A: Payback period is the amount of time required for firm to recover its initial investment in projects…

Q: 1. Why can’t diversification reduce systematic risk? 2. Why are sunk costs excluded when conducting…

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

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.