Describe Trade-Off theory.

Q: What qualifies as a like-kind exchange?

A: Definition: Property, plant, and equipment: These assets are long lived economic resources which are…

Q: Give recommendations on how to reduce exchange rate exposure.

A: Exchange rate risk, often known as foreign exchange (forex) risk, is an inevitable risk of…

Q: In words, what is put-call parity?

A: Put-Call Parity It is a fundamental that shows the relation of option price i.e the European call…

Q: Explain primary market

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

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: What is the difference between the Cumberland Gap and GAAP?

A: Answer:-  Difference meaning:- Difference is an important notion in philosophy, referring to the…

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: Define predatory pricing, dumping, and collusive pricing.

A: Target Costing:Target costing refers to the cost that is ascertained as per the needs and wants of…

Q: What would be the TIE ratio under its relaxed policy?

A: Lets understand the basics. Times earned interest ratio indicates how many times company EBIT covers…

Q: Harmonization and convergence are closely aligned. – Explain.

A: Convergence is described as a process which focuses to eliminate the differences and developing a…

Q: Explain the concept of triangular arbitrage and the scenario necessary for it to be plausible

A: Triangular arbitrage is a consequence when the currency exchange rate does not match up with other…

Q: Understand important international issues that arise in transfer pricing.

A: Transfer pricing:   Transfer pricing refers to the setting of prices for goods and services that are…

Q: What are Equal-Payment Series?

A: Equal payment refers to the equal net periodic cash flows that an investor receives during the life…

Q: Define crossover rate

A: Crossover over rate helps the company to determine which investment proposal will be beneficial in…

Q: Define the term Fair Value Hierarchy.

A: Fair value: A value which is determined based on the market situation, business demand, and the…

Q: Which method is a more efficient way to obtain an equivalence?

A: Equivalence helps to equate the cash flows in such a manner that two cash flows occurring at…

Q: Define the term Multiple Peril?

A: Multiple-perilIt is the insurance coverage package for small and commercial businesses. It is the…

Q: Define the Equal-Payment Series?

A: Answer: The main goal of this investment method is to calculate the present value of equivalent…

Q: Distinguish between primary markets and secondary markets

A: Primary-market-The primary market is the place where the new bonds, stocks, etc are sold to acquire…

Q: Use the AE Method to Compare Mutually Exclusive Alternatives?

A: In capital budgeting, AE (equivalent annual cost) method is the total cost of maintaining and…

Q: How can we use the AE Method to Compare Mutually Exclusive Alternatives?

A: The AE method is used to compare mutually exclusive alternative as explained below,

Q: Differentiate between spot and forward exchange rates

A: Introduction: The spot rate is the rate at which the actual deal or sale is to take place…

Q: Differentiate between primary and secondary markets.

A: Primary market is a market where shares and securities are created and sold for the first time.…

Q: Define the term joint product.

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: what is the reconciling DIFFERENCE:

A: A bank reconciliation statement has been prepared to reconcile the balance as per pass book and…

Q: Distinguish between simple and nonsimple investment with examples?

A: A simple investmentUnder it, there is negative initial cash flow and in the series of net cash flow,…

Q: Usually, which outweighs the other in decentralization—advantages or disadvantages?

A:

Q: What is horizontal merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

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 spin-out

A: Introduction: Spinouts helps the parent corporation by permitting it to emphasis on its core…

Q: Define spin-off

A: Companies going for a spin-off will generally create a unit with the same management structure &…

Q: Differentiate and elaborate bid rate and offer rate.

A: Following is the answer to the question.

Q: Compare the Mutually Exclusive Alternatives, based on IRR?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: illustrate the different exchange rates regimes.

A:

Q: defines the concept of globalization

A: Trade: Trade refers to the process that involves buying and selling of goods and services in…

Q: What is put–call parity?

A: Conditions where two or more things are equal are known as parity. It refers to two securities…

Q: Explain the term single rate method.

A:

Q: Define duality.

A: Duality is related to happening of an economic transaction. This concept arises when any transaction…

Q: What should the transfer price be and why?

A: Given that: Transfer price as proposed by Top Division = $256 Price that is charge to outside…

Q: Define Functional currency

A: currency : Currency is the medium of exchange of goods and services.