Compare raising cash funds in the capital market (selling new shares of stock) versus the bond market (debt financing), and  what is best and why.

Q: Describe three reasons why some hedge fund managers and investment management advisors are…

A: The financial investment in the companies depends upon different parameters, such as the financial…

Q: Please explain in half a page a hedge fund or private equity fund strategy.

A: Hedge funds are suitable investments that employ a variety of strategies to generate returns for…

Q: Would your inclination be to invest in mutual funds or to do the research yourself and invest in…

A: mutual fund: mutual funds is a company that pools money from many investors and invest the money in…

Q: How is the net asset value (NAV) of a mutual fund determined? What is meant by the term…

A: A mutual fund is a type of investment fund that is managed by the investment professionals and take…

Q: Describe some ways other than an IPO thatcompanies can use to raise funds from the capitalmarkets.

A: Additional than initial public offering a corporation might issue stock with the assistance of…

Q: Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an…

A: One of the important decisions which is taken by the financial manager is to maintain the minimum…

Q: Which of the following is an example of direct finance? Select one: investors buy shares in a…

A: Direct finance: Direct finance can be described as a financing method where the funds are borrowed…

Q: The company wishes to mobilize short term funds through various sources, Which of the following is…

A: Companies wish to mobilize short-term funds for short term financing requirements from the money…

Q: Calculate the present value and future value of an uneven cash flow showing how to value common…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: companies choose to issue equity rather than bonds to raise funds overseas. Briefly discuss FOUR (4)…

A: Bonds carry the interest payments to paid each period and face value of bond on the maturity of…

Q: Which flow of funds indicator is considered bearish for equities? A. Higher than Average cash…

A: The flow of funds refers to the accounts of a corporation that are utilized by the corporations to…

Q: What effect does the trend in stock prices (subsequent to issue) have on afirm’s ability to raise…

A: At different interval of time, firm may require capital to invest in various investment proposals.…

Q: hedge

A: Introduction: The term hedging refers to a strategy used by the investors in order to protect…

Q: Discuss the various timing risks a corporate CFO risks when raising funds via bonds or common stock…

A: Bond is referred as the fixed income instrument, which helps in representing the loans that are made…

Q: What value do mutual funds add for individual investors and how?

A: Mutual Fund is a trust that pools together the resources of investors to make a foray into…

Q: What is meant by “going private”? What are someadvantages and disadvantages? What role doprivate…

A: Going private means when a particular group or a firm of private equity acquires the stake in the…

Q: Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares…

A: When a firm or company needs capital to grow or start a new project then it uses debt or equity or…

Q: Which of the following are the MAIN REASONS for an investor to invest in managed funds? I -  To…

A: Answer: The correct answer is Option (A) I, II and III only. A managed fund is nothing but a pooling…

Q: A mutual fund

A: A mutual fund is a  pool of money collected from many diversified investors to invest in securities…

Q: Venture Capital Funds

A: Venture capital is a type of equity financing which gives entrepreneurs or any other companies the…

Q: A mutual fund that invests in a mix of equity and fixed income securities that provide current cash…

A: mutual fund : it is professionally managed investment fund that is pools money from various…

Q: it is mandatory to issue prospectus when raising funds through private equity?

A: Prospectus is a formal document that is required to be filed with the securities and exchange…

Q: When you invest your money in the Stock Market, the original investment is called the

A: Answer : When you invest your money in the stock market the original investment is called the…

Q: Stockholder wealth maximization is the ultimate goal of financial management. Why? Explain the role…

A: Wealth maximization : In simple words, wealth maximization refers to the process in which the…

Q: If an investor had enough money to diversify adequatelythrough buying individual securities, why…

A: Mutual funds raise money from investors and pool that money to invest in different types of assets…

Q: In what respect is preferred stock similar to bonds, and in what respect is it similar to common…

A: Preferred stock and bonds are similar in following aspects- - Both preferred stock and bonds have a…

Q: The practice of Buyback of Shares is considered a cash management strategy. Discuss

A: 1.) When the organisation has excess Cash in hand and doesn't have projects to perform, it opts for…

Q: Explain two major reason why an investor would use a managed fund instead of investing the money in…

A: Managed funds refer to the funds in which investment is managed by the manager by diversifying the…

Q: Why are financial intermediaries a bigger and more important source of funds for investors than…

A: There are a lot of functions a financial intermediary generally performs . The most important is the…

Q: Balanced funds, life-cycle funds, and asset allocation funds all invest in both the stock and bond…

A: Balanced funds are the funds that hold both stocks along with the bond. Asset allocation fund and…