Define Financial leverage.

Q: Define coupon payment

A: Bonds: Bond is a debt instrument issued by the company to raise capital against a term to pay a…

Q: Distinguish between economic and financial capital.

A: Capital resource:  The equipment and goods that are being used for the purpose of generating other…

Q: What are the advantages of balance sheet?

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: Define Money market

A: Answer: Money market is a market place where the short-term securities transactions are made. It…

Q: What are the two different formulas used to Calculate the degree of financial leverage (DFL)?

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

Q: Define Liquidity Analysis?

A: Liquidity analysis is very essential as it shows the ability of the firm in paying short-term bills.…

Q: Define volatility value.

A: Volatility is a rate at which the cost of a security increments or diminishes for a specified set of…

Q: Define  debt investment.

A: Debt Investment: Debt Investment considered as Lending money on loan to the issuing entity. The main…

Q: Differentiate operating leverage from financial leverage.

A: Leverage is the amount of fixed costs a company has in its income statements. Greater leverage leads…

Q: Explain Financial Engineering?

A: Introduction: Financial engineering is nothing but application of quantitative methods in financial…

Q: Distinguish between money markets and capital markets.

A: In a financial market, there are two types such as the Money market and Capital market. In the…

Q: financial

A: Financial leverage refers to money that is borrowed in order to buy assets for the company with 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 Capital Market Line (CML)

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: What is Basic Calculations of Financial Leverage?  Please provide example.

A: Financial Leverage:It represents that how a company uses its debt to acquire assets. It also shows…

Q: Define the term s liquidity position?

A: Definition: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities…

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: Define the term s financial leverage?

A: Financial leverage means buying the asset by taking the debt. The company always uses leverage…

Q: Define Investment bank

A: Introduction: Usually, bank is nothing but a financial institution that pools the deposits by…

Q: What is Degree of financial Leverage and Degree of combined Leverage and its importance.

A: Financial Leverage: It refers to the inclusion of debt for funding the operations of business. It is…

Q: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: What is the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of…

A: Leverage means the use of certain fixed costs, where the firm levers up its profitability. It…

Q: Explain held-to-maturity investment.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Explain Financial Leverage?

A: Companies going for purchase of assets have three options for financing. They are equity, debt &…

Q: Define Seller Financing?

A: Seller financing : Seller financing is real estate agreement which means seller financing the real…

Q: What is financial leverage?

A: Capital Structure:   It refers to the combination of debt and equity that constitutes the finances…

Q: what are the benefits/risks of financial leverage?

A: Financial leverage is a condition wherein a company raises funds through the issue of additional…

Q: Describe financial instruments and investment derivatives,

A: Financial instrument: A financial instrument is a monetary agreement among two parties, which can be…

Q: An example of asymmetr information in financial markets is that

A: Introduction: The term asymmetric information can be defined as a situation when the knowledge is…

Q: Define Market-oriented investors

A: Putting amount in a scheme to earn return is known as investment. Before making an investment,…

Q: What is a compensating control? Give some examples for finance and investment cycle account

A: Compensating Control: A compensating control refers to alternate measures that organizations can use…

Q: Define signaling theory (capital structure)

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

Q: Define spread, bond yield

A: Spread: It is the difference in the two measurable units. It is mainly used in calculating the…

Q: Illustrate how risk related to investment

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: Which are functions of financial markets? Check all that apply: O Maturity intermediation Risk…

A: Financial markets are important in the economy of country and they play very bigger role in the…

Q: finance?

A: Business is an activity carried out with the aim of earning profits. The main objective behind…

Q: Define the term capital investment.

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: Define equity residual model

A: Dividend discount model is one of the models used for the valuation of equity. This model considers…

Q: Define financial flexibility.

A: