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- Question 1 a) Explain the two schools of thought that underpin the relevancy of capital structuring decision. b) With relevant examples discuss at least three short-term and two long-term financing sources. c) Explain the different considerations for deciding on appropriate capital structure for any given enterprise. Question 2 a) Explain the different dividend payment patterns that can be adopted in an organization. b) Explain the challenges faced by financial managers whose organization have very inadequate working capital. c) Explain the conditions that must be achieved for a relation to be a function and hence show whether the above relation is a function or not. Question 3 Explain the following terms as used in Finance for Managers Discounting Compounding Annuities Question 4 a) Jack deposited $1000 in saving account earning 6% interest rate. How much will Jack money be worth at the end of 3 years? b)Jackson needed a $1191 in 3 years to be off some debt. How much should…Capital is the major part of all kinds of business activities, which are decided by the size, and nature of the business concern. Capital may be raised with the help of various sources. If the company maintains proper and adequate level of capital, it will earn high profit and they can provide more dividends to its shareholders. required : a) Define capital structure. b) Discuss the various factors affecting the capital structure.Based on the Massy Group, an investment holding company, answer the following questions. Provide a detail explanation and examples to the answers. Assess the company’s working capital position by analyzing its current assets and liabilities using common methods and measures and perform a comparison/difference to that of another company. Evaluate the efficiency of the company’s working capital management strategies, including inventory management, accounts receivable, and accounts payable and perform a comparison/difference to that of another company. Based on the assessment and evaluation above, provide ten recommendations for improving the company’s working capital management practices, providing examples for each one.
- Which of the following statement is correct Select one: A . The capital structure of a company may comprise of Equity Share Capital, Preference Share Capital and Debentutes B . Capital structure is a method of analyzing and comparing substantial future investments and expenditures to determine which ones are most worthwhile C . working capital referring to the mix of different sources of long - term funds D .Capital expenditure decisions do not involve commitment of large sums of money E .None of the statement is correctExplain Why you agree or disagree with the following statement: The answer should not be more than 3 sentences. Be specific in your answer and write only the most relevant explanations. b) A firm should select the capital structure that is fully levered.a. Discuss using practical example to explain how the concept of dualism increases the liability of a business with respect to capital raised b. Discuss the double entry principle and how it contributes to preparation of balance shhet. c. Discuss, mentioning two current assets and how they will contribute to the growth of a business.
- 1. Identify the concept of an optimal capital structure for a business firm. 2.Analyse TWO (2) issues that manager would be facing when they consider changing a business firm’s capital structure.Which of the statement is FALSEYang mana satu penyataan adalah SALAH? Select one:A.Capital is to be used to further increase the value of the company/ Modal akan digunakan untuk meningkatkan lagi nilai syarikat B.Capital is the net value of a company that exists in the form of cash, inventories & facilities (machines/equipments/vehicles) / Modal adalah nilai bersih syarikat yang wujud dalam bentuk wang tunai, inventori & kemudahan (mesin/peralatan/kenderaan) C.Capital is cash/facilities that are used to generate income/profit of a biz by way of investment Modal adalah tunai / kemudahan yang digunakan untuk menjana pendapatan / keuntungan biz dengan cara pelaburan D.Capital is only in the form of money/ Modal hanya dalam bentuk wangUnder capitalization of a business entity causes a. A situation when long term assets are financed form short term receivables b. A situation when current assets are financed from long term capital c. A situation when long term assets are financed from short term financial resources d. A situation when the respective business entity is spending more capital than it's able to hain
- 1- Which of the following statement is correct Select one: a. Capital expenditure decisions do not involve commitment of large sums of money b. Capital structure is a method of analyzing and comparing substantial future investments and expenditures to determine which ones are most worthwhile. c Working capital refers to the mix of different sources of long-term funds. d. Capital structure of a company may comprise of Equity Share Capital, Preference Share Capital and Debentures. e none of the statement is correct. 2-To achieve maximum return, funds flowing in and out of the firm are to be constantly Select one: a. None of the options. b. Monitored personal financial goals. c. Monitored personal financial management . d. Monitored the costs. e. Monitored to ensure their safety and proper utilisation. 3-Liquidity decision is concerned with management of Select one: a. Short assets . b. Short liabilities. c Fixed assets . d. None of the options . e. Fixed assets and short assets .Read the following statements (i) "Working capital is the amount of funds necessary to cover the cost of operating the enterprise." (ii) "Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another." Choose the correct. A. (i) and (ii) both are correct. B. (i) and (ii) both are false. C. (i) is correct but (ii) is false. D. (i) is false but (ii) is correct.Please quickly answerWhich of the following is / are correct? I. An enterprise established entirely with equity has no financial risk. II. All current and fixed assets owned by the business represent the financial structure of the business. III. Meeting the need for current assets with short-term liabilities and the need for fixed assets with long-term resources is called the “minimum financial balance rule”.