Define spin-off

Q: What is the Compound-Amount Factor?

A: Compound amount factors are the factors by which the interest for a loan is calculated which is…

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: Define beta coefficient, b

A: Answer: Beta coefficient is a coefficient which leads to the measurement of stock volatility in…

Q: Explain primary market

A: Primary market is the market under which the securities of the companies are created. In the primary…

Q: Explain compound interest.

A: Compound interest.

Q: Define spot markets

A: A place where numerous sellers, as well as buyers, come together for exchanging services and…

Q: Define trade-off theory

A: Answer: The trade-off theory suggests a leveraged company’s valuation is equal to the value of an…

Q: Define coefficient of variation (CV)

A: Coefficient of variation: The coefficient of variation is considered as a statistical measure that…

Q: Trade off Theory states that:

A: The capital structure of a company can be defined as the proportion of debt and equity used by a…

Q: What is meant by convergence of US GAAP?

A: IFRS (International Financial Reporting System) is gaining popularity and momentum across all the…

Q: Define compounding

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: Define Factoring.

A: Accounts Receivable: It refers to the amount of money due to the company from the debtors.

Q: Describe Trade-Off theory.

A: Trade-Off theory suggests that there is an optimal capital structure that maximizes the value of the…

Q: Define Beta coefficient

A: Beta coefficient shows the systematic risk of the assets. In simple words, the beta coefficient…

Q: Give an example of an IFC Investment.

A:

Q: Define variable consideration.

A: Variable considerations: Contracts having a degree of variability in the specified transaction…

Q: What is Continuous Compounding?

A: Continuous compounding: Continuous compounding is a kind of compounding countless number of times in…

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: Define binomial lattice

A: A binomial is a polynomial that includes the addition of two terms of the monomial.

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: Define alpha value.

A: Alpha is a value that is used in computation of expected return from an investment. Expected return…

Q: Define asymmetric hedge

A: A strategy that helps to reduce the loss which occurs from the movement of the asset's price is term…

Q: Define bid-ask spread

A: Introduction: The concept of bid-ask spread is related to options trading strategies. Option is a…

Q: What is historical beta?

A: Step 1: Introduction Beta is a measure of systematic risk or it measures the volatility of a stock…

Q: Define reverse split

A: In order to increase the liquidity firm usually conducts stock splits by way of splitting an…

Q: Define yield.

A: Yield can be considered as a metric for cash flow for the investor on the amount with which a…

Q: Define the term Gain Contingencies.

A:

Q: What is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

Q: Define devaluation

A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…

Q: Define transfer price

A:

Q: crossover rate

A: The crossover rate is the cost of capital just at point where two projects have the same net present…

Q: Define unlevered beta

A: Unlevered beta can be defined as the ungeared beta of a company which does not take effect of…

Q: Define signaling hypothesis (dividends)

A: Introduction: This question is based on the concept of dividend theories in capital structure is…

Q: Sall Corporat

A: FIRSTLY, we have to understand the meaning of cumulative and non cumulative shares: 1. Cumulative…

Q: Define each of the following terms: e. NPV profile; crossover rate

A: NPV PROFILE: NPV(Net present value) profile is described as the values of net present value and the…

Q: Define broker

A: Broker is referred as a person or a firm, who used to arrange the transactions between the seller…

Q: What is merger waves?

A: A merger is an agreement under which two existing companies unite into one new company. Mergers are…

Q: What is inverse floater?

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: Define Gains

A: Investment refers to flow of funds made to create capital in order to earn profits from that…

Q: Define Diluted EPS

A: Diluted EPS is a financial ratio to check the quality of the Earnings per Share after taking into…

Q: Define separable cost.

A:

Q: Explain the term single rate method.

A:

Q: Define Profi t margin

A: financial ratios are created with the use of numerical values taken from the financial statements.