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Explain the factors responsible for determination of the firm's optimal Fixed assets capacity
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- Explain the following statement: The optimal financial policy depends in an important way on the nature of the firm's assets?Discuss the risk–return relationship involved in the firm’s asset-investment decisions as that relationship pertains to its working capital management.The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called capital investment analysis. True O False
- What procedures can be used to estimate the risk-adjusted cost of capital for a particular division? What approaches are used to measure a division’s beta?The area of financial management that addresses the optimal choice for long term assets isWhat is the MOST important variable of the financial planning process? Select one: a. The costs b. The capacity of the fixed asset c. The pro forma income statement d. The sales forecast