nciples of Finance.

Q: Which capital investment methods require the use of a present value table?

A: Net Present Value: It is a measure of profitability for a project used primarily in capital…

Q: A conservatively financed firm would: A. use long-term financing for all fixed assets and short-…

A: Finance company is referred to as an organization, which used to make the loans to the businesses as…

Q: Explain the relationship between net present value and internal rate of return, and show how they…

A: Relationship Between Net present Value and Internal rate of Return

Q: Explain how to classify working capital according to its “components” and according to “time” (i.e.,…

A: Working capital is the capital of excess of current assets over current liabilities. Working capital…

Q: What is the purpose of valuation in terms of financ

A: Introduction : In simple words, finance refers to gathering of money by one entity or individual…

Q: What basic principle of finance can be applied to thevaluation of any investment asset?

A: Investor invests in any investment to earn the returns from it. As per the risk and return analysis,…

Q: The following are investment criteria: net present value, payback, profitability index, average…

A: The question is based on the concept of capital budgeting techniques , to ascertain the true worth…

Q: In order to calculate the cost of a long-term asset that is financed with long-term debt, present…

A: Given a certain rate of return, present value (PV) is the current value of a future sum of money or…

Q: The cost of capital includes the cost of equity, the cost of long-term debt and the cost of accounts…

A: The capital of a corporation is the amount of money or funds that a corporation uses for operating…

Q: ) Explain liquid asset management as it relates to a financial institu

A: As per company policy, it s only possible to solve the first part.

Q: 1.A method of estimating property value by discounting on expected future cash flows to a present…

A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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: Explain the meaning and composition of the "return" of a financial investment

A: Financial Investment Funds invested for the purpose of earning returns over a specified period of…

Q: Provide a real-life example of a long-term external source of finance (debt or equity issue). a)…

A: Answer: Part (a): Usually, the external source of funding is obtained from an outside of an…

Q: Discuss the main features of Capital Asset Pricing Model (CAPM) and comment on the validity of the…

A: The capital asset pricing model is a risk adjusted model which will be helpful in finding the…

Q: Explain briefly what working capital and working capital management are and what they do. Explain…

A: The financial Ratios will be calculated by taking the numerical values that are taken from the…

Q: Which of the following is the most widely discussed and used method of defining the discount rate?…

A: Discount rate is a rate at which future cash flows can be discounted to their present values and…

Q: A high capital gearing ratio indicates [A] under capitalization [B] over capitalization [C]…

A: Capital gearing Ratio is the term which means the amount of debt the company has relative to its…

Q: What have been the possible reasons for the changes in  Return of Equity (ROEs )? •Decompose the…

A: Common equity means the amount which is held by equity shareholders in a firm. It does not include…

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

Q: a. Explain the description and show examples of the following terms completely and clearly: implicit…

A: The financial system of a nation includes different components such as financial institutions,…

Q: Buying assets that yield a return greater than the minimum acceptable hurdle rate is a part of which…

A: The governing concepts that form the basis of corporate finance are known as the core corporate…

Q: What is the difference between-1 accounting and Finance? answer this ?question with suitable example…

A: The difference between accounting and finance is as follows:

Q: Generally, the ____ is considered to be a more realistic reinvestment rate than the ____.   a.…

A: Cost of capital is the required rate for make capital budgeting decision

Q: In the aggressive approach to current asset financing, a. fixed assets and permanent current assets…

A: A company's asset financing strategy may be aggressive. The firm is said to be following an…

Q: Which of the following-would be consistent with a more aggressive approach to financing working…

A: Working capital refers to the short-term capital required by a company to meet its immediate…

Q: Determining optimum capital structure is a. An investment decision b. A financing decision c. A…

A: An investment decision is related to the management of the firm's funds into investment in assets.…

Q: Choose the correct.Cost of capital is helpful in corporative analysis of various:  A. Source of…

A: Answer:   Option A.

Q: In deciding the appropriate level of current assets for the firm, management is confronted with…

A: Current Assets: They are the assets that can be converted into cash easily and short term in nature.…

Q: The overall capitalisation rate and the cost of debt remain constant for all degrees of financial…

A: Capital structure refers to the combination of debt and equity in the mode of financing of the…

Q: Which of the following statements relating to working capital financing is not correct? A.…

A: 1. A conservative policy uses long-term debt to finance non-current assets.   A conservative policy…

Q: After deciding the financial requirement, the finance manager should concentrate on…

A: After the financial manager has decided upon the financial requirement of the firm and its projects…

Q: Determining the source of finance comes under ____________________function. a. Investment Decision…

A: Liquidity management helps in estimating the revenue and costs in operating activities. Thus…

Q: The two main approaches to equity analysis are the relative valuation models and… a. The discounted…

A: Stock valuation is very useful to ascertain whether the stock is trading at premium or discount.…

Q: The scope of conceptual framework for financial reporting concerned with Which of the following…

A: THE SCOPE OF CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING DEALS WITH :  1. THE OBJECTIVE OF GENERAL…

Q: Briefly explain the meaning of working capital and working capital management. Also explain the…

A: Explaination: Working capital is an essential term that measures the amount of operational cash…

Q: Explain briefly what the terms working capital and working capital management imply. Explain the…

A: The Answer:

Q: A. Which of the following is most closely associated with the cost of using assets? a. Asset…

A: A. The ratio of total sales or revenue to average assets is known as asset turnover. The asset…

Q: The third step for making a capital investment decision is to establish baseline criteria for…

A: In order to establish baseline criteria for alternatives for making capital budgeting decisions, the…

Q: Identify the one true statement. a. The B/C method determines the ratio of the present worth of…

A: Capital Budgeting involves long-term planning and monitoring of capital expenditure, besides…

Q: To your understanding, Differentiate between debt-intensive and equity-intensive capital structure

A: There are two forms of capital structure one is debt intensive and other is equity intensive capital…

Q: A primary strength of the net present value method for analyzing investments is that it accounts for…

A: Net present value method means where the cash inflow has been discounted at given rate of interest…