What are some of the risks involved in short-term vs. long-term financing ?

Q: what is the discounted payback period for the investment?

A: Payback Period is the calculation of periods or years within which cost of investment is recovered.…

Q: Is it true that current liabilities are riskier than long-term liabilities?

A: Liabilities: Liabilities are debt and obligations of a business. These are the claims against the…

Q: There are two best source of financing the flexibility and Risk. How may one determine the best…

A: Source of financing: It means provision any business entity makes to cover it daily operational…

Q: How do an investment's required rate of return vary with perceived risk? Explain with an example?

A: Required rate of return refers to the rate which the investors expects from their investments. This…

Q: What are the risks of investing in an ESOP?

A: ESOP stands for Employee Stock Ownership Plan. It is a plan that gives an ownership interest in the…

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

Q: What is meant by Short-term financing?

A: Finance refers to the study of money , currency as well as the capital assets.There are basically…

Q: Are the financial projections realistic and healthy?

A: Estimating things before the real cost and revenue incurred is known as financial estimation.…

Q: Which Interest Rate do we use in comparing different financing options?

A: The question is based on the concept of interest rate , which is used in comparing financing…

Q: What is reinvestment rate risk?

A: The reinvestment rate risk is the potential decline in the interest income that tends to be a result…

Q: What are investment returns?

A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…

Q: What is the causes of the financial risk?

A: financial risk - financial risk is the possible danger of losing money from an investment made by…

Q: What does maturity matching mean, and what is the advantage of this financingpolicy?

A: Maturity matching or hedging approach: It is a working capital financing system where we fund short…

Q: What are the best short-term and long-term investment strategies going forward into the future?

A: Short term investment strategy – Those investment that are usually traded for upto a span of 3 years…

Q: What is Unsecured financing?

A: Whenever a person requires financial assistance, they may contact a financial institution and seek…

Q: What serious drawbacks do the much-used payback method of investmentscreening have?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: how to Compare Different Financing Options

A: The question is based on the concept of financing options and its comparison.

Q: What are your

A: Alternative finance refers to financial channels, processes, and instruments that have emerged…

Q: Comparison of Financing Alternatives?

A: MEANING Alternative financing is a means of obtaining capital outside of the traditional banking…

Q: Illustrate the method of investment risk: Investment?

A: Following are the methods of investment risk: Investment: Standard deviation: Standard deviation…

Q: What is behavioral finance? What are the implications of behavioral finance formarket efficiency?

A: Behavioral finance is the study of the psychological influences of an investor that affects the…

Q: When is a project in Need for an External Interest Rate?

A: When net cash flow that is generated by the project during the project’s life is reinvested, then…

Q: What is off balance sheet financing?  Why do we care about it?

A: Financial statements can be defined as a summary of the financial performance of the business over…

Q: Write Importance of sources of finance. What are the Advantages and Disadvantages of medium term…

A: Source of finance refers to the ways in which the business gets funds to start and execute its…

Q: Explain Loan versus Project Cash Flows?

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

Q: Compare and contrast short and long-term financing.  Which business activities would necessitate…

A: Short Term Finance means sourcing for the financial requirements for a short period of time. Short…

Q: Define conservative approach (for short-term financing)

A: Companies which adopt a conservative approach to manage their working capital can reduce their short…

Q: Question. What are the three most important elements that the firm should examine when deciding on…

A: Introduction: Short-term finance is described as the requirement for capital (money) for a shorter…

Q: Define aggressive approach (for short-term financing)

A: The aggressive approach is a high-risk strategy of working capital financing wherein short-term…

Q: What are the implications of behavioral finance?

A: Behavioral finance is a study which combines the psychological, social and traditional factors. It…

Q: what are the benefits/risks of financial leverage?

A: Financial leverage is a condition wherein a company raises funds through the issue of additional…

Q: Describe the hedging (maturity matching) approach to financing and the advantages/disadvantages of…

A: Matching or hedging approach:  This approach matches assets and liabilities to maturities.…

Q: What is the implication of technical analysis to behavioral finance

A: Technical analysis is a search for trends or patterns in market prices of securities which are then…

Q: Explain current liabilities are riskier than long-term liabilities?

A: Liabilities:   A liability is a sum of money owed by the company towards external entities like a…

Q: Explain the long-term source of finance

A: The company raises funds from various sources of finance such as equity, preference shares, debt in…

Q: Is the incremental cost of borrowing additional funds affected significantly by the early repayment…

A: Incremental cost of borrowing additional funds : For determining the total cost of borrowing the…

Q: Discuss the following terms…

A: Terms mentioned in the question relates to overall financial markets and management as well risk…

Q: Compare short-term and long-term investment strategies.

A: Investment strategies can be defined as those strategies which consist of various methodologies and…

Q: how much additional financing is needed?

A: A firm has two sources of finance. One is internal financing and other is external financing.…

Q: Explain Yields on Investment Annuities?

A: The question is based on the concept of calculation yield, which describes the  returns to the…

Q: What are the key factors on which external financing depends, as indicated in the AFN equation?

A: Introduction: Additional funds needed (AFN) is a financial term that is used when a company’s trying…