What are three variables that the firm does not control when it seeks to raise funds; indicate the impact

Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don't firms use…

A: Under the business setting, the spontaneous funds source states to the financing that arises from…

Q: Identify the incorrect statement in connection to working capital management:       A.…

A: A business organization needs to manage its working capital for the smooth functioning of its…

Q: What is the process of making decisions about financing and funding aspects? Group of answer choices…

A: Financing and funding aspects involve the act of obtaining money for the purchase or enterprise and…

Q: What are the two main types that a company uses as a source of funding? Explain in detail

A: T etwo main type of source of  funding is : debt equity

Q: Which of the following statements correctly translates into funding? Group of answer choices…

A: Funding: The word "funding" refers to a certain sum of money provided for a specific purpose.

Q: The methods of evaluating capital investment proposals can be grouped into two general categories…

A: Capital budgeting is used to evaluate the projects. With the help of capital budgeting, the…

Q: Which of the following should NOT be included as a cash flow in initial, operating or terminal cash…

A: There are various different costs associated while taking a capital budgeting decision.

Q: Which of the following is not a benefit associated with the NPV technique in capital budgeting?…

A: The best method for evaluation of an investment proposal is net present value method or discounted…

Q: Why does capital budgeting rely on an analysis of cash flows rather than on net income? Base your…

A: Since, there are more than one question is posted at a time. The answer for first question is only…

Q: In calculating the incremental after-tax cash flows associated with a particular investment, the…

A: Sunk Costs is that cost which was already incurred on the project before starting the Project these…

Q: What is opportunity cost and why is it an important concept in the capital budgeting process? The…

A: I am answering the first question as per bartleby guidelines. Please re-submit the remaining…

Q: onsidering short term financing for working capital requirement. What are three key factors that…

A: Short-term financing:  Short-term financing deals with raising of cash needed for a shorter periods…

Q: You can come across different situations in your life where the concepts from capital budgeting will…

A: A. An example of externality that can have a negative effect on a firm CANNIBILIZATION The cash flow…

Q: Which of the following is NOTa relevant cash flow and thus should not be reflected in the analysis…

A: Sunk cost is the cost that has been incurred and it would not be recovered in future. It depends on…

Q: Discuss the three major factors that discriminate between successful and unsuccessful new financial…

A: There are mainly two things through which a company generates revenue i.e. by selling products or…

Q: Why is it beneficial or advantageous to divide the funding needs of a seasonal business into its…

A: A financing strategy is a documented and agreed-upon plan that identifies an organization's or…

Q: Which two techniques are used most often in firms’ capital budgeting practices?

A: Capital budgeting refers to the process where investors evaluate the long-term investment proposals…

Q: What is the Decision-making Criteria in Capital Budgeting?

A: Hi, there, Thanks for posting the question. As per our Q&A honor code, we must answer the first…

Q: Suppose your firm raises funds from outside lenders. What type of agency costs might occur? How…

A: Agency cost is the internal cost that arises internally within the firm. It can happen due to peer…

Q: The cost of capital used in capital budgeting should reflect the average cost of the various sources…

A: Cost of capital reflects long term funds like debt and equity yo acquire assets

Q: Financial management involves decisions about which of the following: A. Which projects to fund. B.…

A: Financial Decesion making is the decesion making process of selecting the best alternative out of…

Q: The cost of capital depends primarily on the use of the funds, not the source. True or False

A: The cost of capital is the minimum return required by the company to satisfy their equity…

Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don’tfirms use…

A: Spontaneous source of funds means source through which funds can be arises from daily business…

Q: The idea of determining the WACC is to identify the relevant cost of utilizing funds provided by…

A: WACC is an abbreviation for weighted average cost of capital. WACC is computed to evaluate various…

Q: Which of the following is not a reason for risk and uncertainty in capital budgeting? a. Decisions…

A: Capital Budgeting decision are based on various factors

Q: What is failure of competition?

A: The question is based on the concept of economic failure of market due to imperfect situation

Q: The calculation of a hurdle rate when looking capital expenditures involves looking at what…

A: Generally companies take up new projects only when the project passes the hurdle rate (HR). As the…

Q: company calculates its discretionary financing needed and determines this amount of capital  cannot…

A: The discretionary financing needed or external financing needed is those funds that have been needed…

Q: Which of the following is NOT considered a finance activity?     Planning and budgeting…

A: There are various financial activities.

Q: Discuss two drawbacks of utilizing the weighted average cost of capital to make investment choices…

A: This question explains the disadvantages to using the weighted average cost of capital to allocate…

Q: Determine the decision nature of each of the following issues:                            What are…

A: There are different types of decision which a firm is required to take which includes investing…

Q: 1-What are the relevant cash inflows and outflows for capital budgeting decisions?

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Can the firm withdraw funds from the investment pool for other investment purposes?

A: Yes, a firm can initiate the withdrawal of the amount invested from the investment pool in which…

Q: The funds requirement can be forecasted by theforecasted financial statement approach, but youcould…

A: Additional funds required (AFN) is that the quantity of cash a corporation should raise from…

Q: The rationale for funds transfer pricing is that there are: Group of answer choices D. Less chances…

A: Sisters subsidiaries system of transfer pricing (based on the going market prices)  allows for the…

Q: or example you need money from outside and that's why you are looking for the best options of…

A: Answer

Q: A firm’s weighted average cost of capital should not do which one of the following? Group of answer…

A: Weighted average cost of capital means the cost of raising the various fund taking the amount of…

Q: Why should companies use a project’s cash flows rather thanaccounting income when determining a…

A: Net Present Value is the difference between the current value of cash inflow and cash outflow for a…

Q: Which of the follwing is not correct about goals of finance function Select one: a. Improper…

A: Goals of the finance function - - proper utilization of funds  - acquiring sufficient and suitable…

Q: BIP can be used in capital budgeting decisions to determine whether to invest a certain amount. O…

A: Capital Budgeting :- It is an process of deciding or choosing best amoung different alternatives…