How can a corporation best take advantage of the concept of the time value of money?

Q: Describe how corporations finance their operations.

A: Corporations is one of the forms of business entity that has separate legal entity (i.e.) that is…

Q: Why might a large corporation want to raise long-term capital through a borrowing money from…

A: Raising money from financial institutions increases the likelihood of finding investors who share…

Q: How does our tax system influence the use of debt financing by corporations?

A: Answer: If a company uses debt financing, it will pay interest while if it uses stock, dividends are…

Q: Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction…

A: Paid-in capital and retained earnings are the two main categories of stockholders' equity.

Q: If a corporation decides to pay out a cash dividend, when does that happen?

A: The Answer :

Q: Define Forecasting the Income of a Major Corporation?

A: It is essential to forecast income in order to make informed business decisions. Previous year…

Q: Why would a company decide to pay investors cash? What are the two ways to give cash back to…

A: Cash is paid in terms of dividends.

Q: primary way a corporation can raise money through Equity financing

A: Primary market is market where money is raised via public by issue of stock.

Q: What information do investors and creditors need when determining which companies will receive…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What does it mean to maximize the value of a corporation?

A: Maximizing the value of a corporation: The value of the corporation is maximized by increasing…

Q: Why are the costs of selling equity for a corporation so much larger than the costs of selling debt?

A: Introduction Debt and Equity are part of the capital structure of a company. The cost of equity is…

Q: Which sort of firm must pay taxes on its cash payments to its shareholders

A: Generally speaking, an S company is a small organization where stockholders should be fewer than…

Q: The finance function within a corporation quantifies the economic relationships of that corporation.…

A: Finance function of the corporation plays very important role in the management of funds. It deals…

Q: Exactly when does a corporation decide to pay out a cash dividend?

A: -CASH DIVIDEND:  Cash dividends are considered Assets because they increase the net worth of…

Q: How can finance managers access and monitor the health and performance of a company?

A: This question explains about the finance managers access and monitor the health and performance of a…

Q: Would a Financial Manager's role (functions) in a corporation increase or decrease in importance if…

A: Financial manager is a person who takes all the decisions related to funds for the firm by…

Q: Explain how a company can be “profit rich, yet cash poor.”

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: What are the ways in which a bank can increase its capital adequacy ratio?

A: Capital Adequacy Ratio or CAR is referred as the measure through the capital for the bank that are…

Q: What impact does the inability to issue common stock have on a not-for-profit business's capital…

A: We have to discuss the effect of the inability to issue common stock on Capital Structure and…

Q: What is finance in corporations

A: Corporations is a legal establishment which has separate identity from its owners. They can enter…

Q: ly how taxation (both corpora

A: Introduction : In simple words, capital structure refers to the composition of different types of…

Q: Critically evaluate different short-term and long-term sources of finance for a corporation and how…

A: Sources of finance are the ways through which a firm can raise capital. Examples of sources of…

Q: Which of the following statements best describes how a corporation determines its cost of capital?…

A: Cost of Capital is the rate of return the firm expects to earn from its investment in order to…

Q: What three properties of future cash flows affect a corporation’svalue?

A: Future cash flows means amount which company will receive or pay after certain period of time.…

Q: What are the advantages and disadvantages of a company raising capital through the issuance of…

A: Equity is the owner’s share of capital in the company.  Equity share capital is the owned capital.…

Q: How do a company’s investment opportunities, capital structure,and working capital policies affect…

A: Shareholders are the subscribers of the firm’s capital. They are the owners of the company. A…

Q: Critically discuss the effect of increasing the amount paid upfront when corporations make capital…

A: Capital purchases refer to the expenses a company makes for buying new equipments, improving long…

Q: the effects of increasing the amount paid upfront when corporations make capital purchases with a…

A: Capital expenditure is an expense, that generates profits for a longer period of time which can be…

Q: hich of the following statements best describes how a corporation determines its cost of capital?…

A: A capital structure of a firm is a mix of debt and equity used for financing its long term…

Q: Taxes affect many financial decisions. Explain how (a)interest and dividend payments are treated for…

A: a. From the company’s perspective, Interest and dividend payment reduce the tax liability of the…

Q: How does attracting equity capital easier for a corporation?

A: Equity Capital Financing: It is a process of raising finances or capital by selling shares. When…

Q: What effect does an investment of cash in a corporation have on the corporation's bal OA. It…

A: The double entry system becomes the base for the preparation of Accounting equation. As per…

Q: What is the relationship between the concepts of net present value and shareholder wealth…

A: Net persent value(NPV): NPV is the difference between persent value of all future cash inflows and…

Q: Explain why shareholder wealth maximization is the be-all and end-all for a company

A: Most of the business goals is maximizing the value of its firm because it leads to an increase on…

Q: Explain why wealth maximization is a preferred goal over profit maximization for an organisation

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Can corporations use the Cash method of accounting ?

A: There are certain types of companies which can follow cash basis of accounting. In cash basis of…

Q: discuss financial theories surrounding the shareholder wealth maximization paradigm (e.g. agency…

A: The theory of the agency is a principle used in the relationship between company principals and…

Q: For what reason do corporations retain earnings in the business?

A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…

Q: What is the primary way a corporation can raise money

A: There are several ways a corporation can raise money.

Q: How does shareholder value relate to capital structure?

A: The combination of various types of external funds, known as capital, used to finance a corporation…

Q: What should be the primary goal of a corporation?

A: Corporation: It refers to a large company considered as an individual entity and recognized in law.

Q: Is it realistic to believe that an optimal capital structure exists or might be achieved by a…

A: The first  and the foremost thing to be addressed is what capital structure is composed of. A…