“Because corporations do not actually raise any funds in secondary markets, they are less important to the economy than primary markets.” Comment.

Q: Because corporations do not actually raise any funds in secondary markets, they are less important…

A: Secondary market is a market wherein the securities are issued or trade for the second time. primary…

Q: Which of the following statements is incorrect?      A. Dividend payments can be influenced by cash…

A: Dividends are the amount of profits distributed to the shareholders of the company.

Q: A corporation cannot survive if the original owners are the only ones to invest in terms of equty…

A: Equity financing is the method of getting capital in exchange for partial ownership of the company.…

Q: It has been suggested that in a world with only corporate taxation the value of the firm = the value…

A: Capital structure of a firm signifies the mix of equity and debt used for financing the business.…

Q: Capital flight can occur due to A) government regulations on interest rates B) inappropriate…

A: A capital flight refers to the movement of capital from one country/ region to other…

Q: Why are the costs of selling equity for a corporation so much larger than the costs of selling debt?

A: Introduction Debt and Equity are part of the capital structure of a company. The cost of equity is…

Q: it typically has a higher cost of capital than equity. it carries voting rights.

A: Debt financing occurs when a company raises capital by selling debt instruments to investors. The…

Q: Why securitisation may be very beneficial for both institutions and investors ?

A: explanation Securitization is beneficial because it provides possibilities for investors while also…

Q: What impact does the inability to issue common stock have on a not-for-profit business's capital…

A: We have to discuss the effect of the inability to issue common stock on Capital Structure and…

Q: When any central bank wanted to increase the money supply and loosen credit conditions, what would…

A: In order to increase the money supply and loosen credit conditions, the central bank would purchase…

Q: What is finance in corporations

A: Corporations is a legal establishment which has separate identity from its owners. They can enter…

Q: One party in Congress seems to believe that financial institutions are too highly regulated, and…

A: The regulations which are formed to regulate the activities of banks, investment firms and other…

Q: How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the…

A: Introduction: This question stated that the company made the provision or provided for allowance for…

Q: Much capital structure theory focusses upon minimising agency costs, taxes, and bankruptcy costs. It…

A: capital structure theory says that for any company or investment there is an optimal mix of debt and…

Q: Which of the following is not something that corporations can do with their profits?   a. Pay…

A: Corporations are large company or group of companies.

Q: Distinguish between direct finance and indirect finance. Which of these is the most important source…

A: Direct finance-Under direct finance, there is a direct relationship between lender and borrower.…

Q: When valuing private companies, we use public companies as comparables to gain insights into how the…

A: Valuation of private companies is not easy simply because of the fact that limited information are…

Q: you think that the pandemic has impacted the ability of firms to raise

A: Pandemic have impact on whole business scenario and financial conditions.

Q: Analyze why, despite employing various investment appraisal techniques, large investment projects in…

A: Capital project is the project which helps in improving and maintaining the asset, often known as…

Q: Theory provides that without taxes, a government would be paralyzed for lack of power to activate…

A: Tax is the amount through which government gets its funds by way of the collecting tax amount from…

Q: In financing their operations, corporations have the options of raising capital by issuing stock or…

A: corporations have the option of raising the capital by issuing  - stocks (equity capital) - debt…

Q: What is the important question of corporate finance when a finance manager advises the company’s…

A: Hi, since you have asked two different question. We will answer the first one as per the authoring…

Q: Which statement is not correct?      A. The primary function of the financial system is to…

A: financial system is a the system that allows exchange of funds between financial market and lenders,…

Q: 19. _____________ are the financial intermediaries between those who have surplus money and those…

A: Financial intermediaries serve as middlemen for financial transaction, generally between lenders and…

Q: why the non-government financial institutions are allowed to operate in our economy.

A: A non- government financial institution are those that does not have full banking license or is not…

Q: Because corporations do not actually raise any funds in markets, they are less important to the…

A: The prices are determined by the secondary market for the securities issued by the firms in…

Q: Which of the following is not an assumption made by Modigliani and Miller in relation to the…

A: The question is related to theories of Capital Structure.  As per MM Approach, a change in…

Q: Which is false about long-term sources of a firm's capital? * , O All types of corporations may…

A: Long-term sources in accounting: The term 'Long-term' indicates the time span of more than one year.…

Q: The key strengths of the public corporation is/are A. their capacity to allow efficient risk sharing…

A: Public corporation is referred as the corporation where a part of company’s assets and profits are…

Q: What is the impact of capital controls that restrict mobility of capital across nationalborders on…

A: Capital controls are the controls that are implemented on the international movement of capital.…

Q: What is the primary way a corporation can raise money

A: There are several ways a corporation can raise money.

Q: Which of the following statements is CORRECT?    One drawback of forming a corporation is that it…

A: The corporation is a category of business that is formed by the law of the country and is considered…

Q: Commercial banks are often restricted by Central banks to hold sufficient capital. Why is such a…

A: A commercial bank may be a financial institution that accepts deposits, provides bank account…

Q: What is meant by the goal of maximization of shareholder wealth?

A: A business organization is defined as an entity that is being incorporated with the aim to carry on…