Define capital requirement ratio (CR)

Q: Define risk-adjusted cost of capital (r)

A: Risk adjusted cost of capital is the measure of returns of a project relative to the risks of a…

Q: Working Capital definition and formula Receivables definition and formula Inventory definition and…

A: Financial Statement which comprises Statement of P&L and Balance Sheet is the end product of the…

Q: Write the capitalized-cost equation?

A: Answer: Capitalized cost is well-defined as the present value of an annual cost constant over an…

Q: Explain the graph in the context of working capital management.

A: Working Capital Management is a business strategy in which businesses design their strategies to…

Q: . How are the component costs combined to forma weighted average cost of capital (WACC),and why is…

A: It is the discounted rate that has been calculated by the company on the basis of which present…

Q: Explain what is capital or capital financing? Examples

A: capital financing is the form of business finance that is raised through equity funds and lenders…

Q: discuss FASB standard in working capital

A: The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary…

Q: authorised capita

A: Share capital represents the equity of the company held in hands of the shareholders of the company.…

Q: Define asset management ratios

A: Asset management ratio: It ascertains the estimation of the sales or revenues of an organization…

Q: Weighted average cost of capital is the combined cost of capital using a capital mix. The capital…

A: The Answer

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: Define capital rationing

A: Capital apportioning implies restricting the number of new ventures or projects an organization…

Q: Define capital intensity ratio

A: Formula to compute capital intensity ratio:

Q: Calculate the debt ratio

A: Debt ratio is a financial ratio which is calculated by dividing the total liabilities by the total…

Q: Define each of the following terms:c. Target capital structure

A: Target capital structure: Determining the optimal capital structure is not an easy task for the…

Q: Derivation of capital asset pricing model

A: The Capital Asset Pricing Model (CAPM) relates the returns on individual assets or entire portfolios…

Q: Define the term financial ratio.

A: Financial ratio: The financial ratio is used to determine the performance of the business by…

Q: State TWO (2) factors that differentiate between the Rate of Return and Cost of Capital.

A: The rate of return and cost of capital are key considerations in financing and investing. These…

Q: Define cost of new external common equity

A: Cost of new external common equity is simply the cost of raising equity capital externally by means…

Q: Define asymmetric information theory (capital structure)

A: Capital structure plays an important role for any organization & it would be generally in the…

Q: Define Capital Asset Pricing Model (CAPM)

A: The CAPM or capital asset pricing model is considered to be a popular concept in finance. The main…

Q: What is the weighted average cost of capital?

A: The formula to compute weighted average cost of capital as follows:

Q: Does weighted average cost of capital is similar to Cost of Capital?

A: Cost of capital refers to the return expected by the company for making investments in projects or…

Q: financial ratios?

A: Ratio is tools to analyse the financial data of an organisation. Some Financial ratio are as  Gross…

Q: weighted average cost of capital

A: WACC = (kd * (1 - t) * Wd) + (kp * Wp) + (ke * We); where, kd = Pre-tax cost of debt t = Tax rate Wd…

Q: Working capital management refers to

A: Working capital management may be a business strategy designed to confirm that a corporation…

Q: How to calculate working capital, current assests, current liabilities, quick assets, quick ratio…

A:

Q: What is an example or scenarios of Capital Allocation Line (CAL)?

A:

Q: Define paid-in capital

A: Definition: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the…

Q: Define the terms “book-value capital structure,” “market-value capital structure,” and“target…

A: Book value capital structure refers to the relative proportion of common stock, preferred stock,…

Q: Define debt ratio

A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…

Q: Define each of the following terms:a. Weighted average cost of capital, WACC

A: Introduction: This question is related to the concepts of corporate finance. Corporate money…

Q: Explain the concept of capital budgeting

A: Capital budgeting is additionally called investment appraisal utilized in evaluating major…

Q: Explain the relationship in formula Capital Assets Pricing Model

A: Capital Asset Pricing Model (CAPM): Capital Asset Pricing Model (CAPM) measures the relationship…

Q: Capital; capital structure; optimal capital structure

A: Capital: Ownership of assets of financial nature is termed as capital. Capital can be used for…

Q: Define signaling theory (capital structure)

A: Capital structure: Capital structure is defined as mixture or proportion of all kinds of capital…

Q: Define the term capital rationing.

A:

Q: Describe how the following factors affect external capitalrequirements: (1) payout ratio, (2)…

A: The funds which are raised externally i.e from outside sources is called external financing. The…

Q: Define the terms working capital, current ratio, and acid-test ratio (or quick ratio).

A: Answer: Working capital: The working capital is excess of current assets over current liabilities.…

Q: What is a target capital structure?

A: Capital structure is the combination of debt and equity used by the company to finance its business.

Q: Define the term, the return on invested capital (RIC)?

A: All investments are made keeping focus on the expected returns that can be generated from it. The…

Q: What is the weighted average cost of capital (WACC), and how is it calculated? Kindly answer ASAP

A: WACC is the combined return demanded by both equity and debt holders.

Q: weighted average cost of capital

A: WACC stands for Weighted Average cost of capital refers to the cost of capital of the company which…

Q: Example of Capital Allocation Line (CAL)

A: Capital allocation line: Capital allocation line is also named as capital market line. Capital…