The investment banks collect money from public, because O a. Business sells products. O b. Business issues shares and debentures. O c. Business wants to make profits. O d. Banks issue shares and debentures.
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A: Users of financial information: People who rely on accounting information to make best decisions or…
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A: Financial intermediary: It is a firm that goes about as the agent between two parties in financial…
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A: Because you have posted multiple questions, we will answer only the first question and for the…
Q: Which of the following is a financial investment that represents a loan made to a private business?…
A: Financial investment means the amount invested in financial instruments by an investor. It can be in…
Q: Which of the following can be described as involving indirect finance? a. People pay premiums to an…
A: An indirect finance is referred as the finance, where the borrowers used to borrow the funds from…
Q: How is an investment banker compensated for promoting and facilitating the sale of a company’s…
A: Investment banker (IB) is the special facility given by the banks or separate institutes which…
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A: Companies are often sells shares/stock to investors in capital market.
Q: What is your understanding on private equity, is it financial institution? Explain. If you are a…
A: Private equity is a type of alternative investment that involves money that isn't traded on a public…
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: Financial Market is a market in which financial assets (securities) such as stocks and bon can be…
A: A financial market is a place where buyers and sellers of financial securities meet together in…
Q: Which of the following can be described as involving direct finance? A. People buy shares in a…
A: Direct finance does not involve any intermediate party or a third party. There is a direct…
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A: The corporations are considered as separate legal entity. They have different types of methods for…
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A: Banks are the financial institution that lends money and accept deposit from the public. It helps…
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A: The question is based on the concept of response from the bank for economic recession under the…
Q: Which is false about long-term sources of a firm’s capital? a. Preferred shares are securities…
A: Solution:- Long term sources of capital are those sources of funds from where the funds are acquired…
Q: Which of the following statements is/are true? Statement 1: A key role of financial markets is to…
A: Corporate finance activity involves activities such as the amount of fund required to obtained,…
Q: In making a financing decision, how would a financial manager answers questions like: 1. How…
A: Financial manager (FM) has to make various decisions for the company related to the funds. One of…
Q: 1 Which of the following is least lkely to be a finucial intermediary? A Finance companier 8,Mutual…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Which of the following can be described as involving direct finance? O A. People buy shares in a…
A: Borrowers borrow funds directly from the financial market without the need of a third-party service…
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: refers to the way a company finances itself through some combination of loans, bond sales, preferred…
A: The mix of equity and debt in a business organization is known as the capital structure of the…
Q: Which of the following statement is NOT a function of the stock market in a market economy? A. to…
A: Introduction : In simple words, stock market refers to the sum of buyers and sellers of stocks of…
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A: Financial Leverage: Financial leverage is a term used to define the capital structure of a company…
Q: 1 Which of the following is least likely to be a financial intermediary? A. Finance companies 8,…
A: Because you have multiple question, we will answer the first question only. For the remaining…
Q: A company is involved in investing activities when these: Multiple Choice activities involve…
A: Investing activities include buying and selling of long term assets such as building, Machinery,…
Q: Activities in financial markets have direct effects on individual wealth, the behavior of business…
A: The financial market refers to the place where the trading of instruments and securities takes…
Q: True or False Acceptability is concerned with whether an alternative addresses the key issues…
A: CFROI is the acronym of Cash Flow Return on Investment. It is a formula used to determine how much…
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A: Earnings per share is the share of a company’s profit distributed among all shareholders. Retained…
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A: Hi, since you have asked two different question. We will answer the first one as per the authoring…
Q: What are the company motives for declaring dividends or stock repurchase programs? 2. How would you…
A: Because you have asked multiple questions, we will solve the first question as per the policy of…
Q: Which of the following users assesses the attractiveness of investing in a business A. Bank B.…
A: Before Investing in any business users go through the financial statements of the business and other…
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A: Wealth maximization : In simple words, wealth maximization refers to the phenomenon under which the…
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A: The answer for the question on using the cash raised by the rights issue to buy back bonds is…
Q: Which of the following is a financial investment that represents a loan made to a private business?…
A: Purchasing mortgage backed securities, doesn't represents a loan made to a private business.
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A: Corporate finance deals with the capital structure of a company, funding, and it also consists of…
Q: How is securitization supposed to help banks and S&Ls manage risks andincrease homeowners’…
A: Securitization is a method in which assets are converted in securities by using financial tools.…
Q: As a micro-enterprise, which sets of financing are the most likely to be used? * A. Banks and…
A: 'Micro-enterprise' is a term that is used to refer to a small business which employ less than 9…
Q: Which of the following actions would improve a firm's liquidity? a. Selling shares and…
A: Liquidity is referred to as an ease of the conversion of the assets or security, which can ready…
Q: The Jones Bank Ltd has two departments. (a) a pension fund department, which invests money on…
A: Agency conflict is a kind of conflict of interest in which the agent works against the best interest…
Q: Which of the following is a financial investment that represents a loan made to a private business?…
A: Introduction: Financial investment is considered as the amount capitalized in financial instruments…
Q: Which one of the following statements is TRUE? a. Creditors have a claim on a firm's earning…
A: Charter is a legal document that contain details of the governance, structure, objectives and other…
Q: Investment banking refers to O A. Activities related to underwriting and distributing new issues of…
A: INVESTMENT BANKERS HELP THE FIRM IN IPO.
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- Which of the following can be described as involving indirect finance? a. People pay premiums to an insurance company b. A corporation issues new shares to people c. People lend money to their friends d. People buy bonds from companiesWhich of the following statement is NOT a function of the stock market in a market economy? A. to offer a safe and predictable rate of return for investorsB. allows households to invest savings into corporations in order to make profits through capital gains and earn money through dividendsC. allows public corporations to raise capital for business expansion, to finance new products, and to acquire other businesses.D. All of the statements are function of stock market in the companyIn making a financing decision, how would a financial manager answers questions like: 1. How should the cash required for investment be raised?2. Should we borrow from a bank or should we issue new shares ofstocks?
- Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. Below is a set of decisions made by finance professionals. Categorize the decisions according to the area of finance to which they belong. Decision Corporate Finance Capital Markets Investments Ethan must make a decision on how to cut costs so that his company can generate extra cash flow to acquire assets. Radford works for an investment bank and makes decisions about the sale of new common stock by ABCL Inc. Aakash works for a financial advising firm. He must create a financial plan and come up with a list of securities in which his client can invest. Aakash must make decisions regarding the investments that he should recommend to his clients to include in their portfolio.What is your understanding on private equity, is it financial institution? Explain. If you are a financial advisor, what do you think you can suggest from the management of a company who is suffering from financial distress? Why? Explain.Which one of the following statements is TRUE? a. Creditors have a claim on a firm's earning stream through the dividend payments they receive. b. One tool of corporate governance is a company's tax avoidance strategy. c. One tool of corporate governance is stock repurchases. d. One tool of corporate governance is how the company's charter affects the likelihood of a takeover. e. One tool of corporate governance is choosing a good investment banker.
- Deli Llama operates in a state with a sales tax. What will be the effect if it records a cash sale to a customer? (Select all that apply.) Liabilities will decrease. Assets will decrease. Liabilities will increase. Stockholders' equity will decrease. Stockholders' equity will increase. Assets will increase.a)- Do manager of a firm care more about their EPS than retained earnings? Explain why, just start your explanation with because.... b) Do vendors of a firm care more about cash flow than EPS? Explain why, just start your explanation with because.... c) Do investors care more about EPS than stock price? Explain why d) Do banks (or creditors who loaned money to a firm) care more about the firm's working capital or the firm's dividends? Which one and why? e. Which of the following will raise a firm's stock price: stock repurchases or a new stock issue? Briefly explain why? Start your explanation with because...he Jones Bank Ltd has two departments. a) a pension fund department, which invests money on behalf of clients and customers, by investing in bonds, shares and so on. b) a merchant bank department, one of whose clients is the prestigious and dynamic Sampson and Brown Ltd, which is to offer a new tranche of shares to the investment community. Required: Identify the potential conflict of interest. DISCUSSION In times of recession, it is the banks who ultimately decide whether a particular business survives or fails. There is a widespread view that banks should support small businesses come what may, as not to do so would be socially irresponsible. Give reasons for and against this view.
- For the company GSK PLC discuss a recent Investment Bank deal - what was the company, the investment bank, and some interesting points regarding the deal? How do investment banks make profits?According to your book Financial Management for Small Businesses, 2nd OER Edition, In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?How is an investment banker compensated for promoting and facilitating the sale of a company’s shares to the public?