What is a firm’s fundamental value (which is also called its intrinsic value)?

Q: What effect does leasing have on a firm’s capital structure?

A: Introduction: A lease is nothing but a contract between lessor and a lessee. The lessee is entitled…

Q: what determines the market value of a company?

A: Market esteem (otherwise called OMV, or "open market valuation") is the value a resource would get…

Q: What is financial leverage and how does it affect a business's performance?

A: The company borrows money to acquire assets and do operations. The amount of debt a corporation has…

Q: What is the risk-return tradeoff that arises when . firm manages its working capital? Give tangible…

A: Financial risk is referred as the possibility or chance of losing the investment, basically an…

Q: The financial leverage implications for company analysis?

A: 1. Financial Leverage: To finance the New Assets management borrowed money. it is called financial…

Q: The financial leverage implications for company performance?

A: Financial Leverage means the inclusion of debt in the company's capital structure. Debt is used to…

Q: Define the value maximization of firm goal and describe the relationship between this goal and…

A: Value Maximization can be additionally characterized as investors value maximization. Since a…

Q: What is Profitability?

A: Profits means the excess of revenue earned during a period over the expenditure incurred to generate…

Q: What is a firm’s business risk? operating leverage? How does the operating leverage affect the…

A: A business can be defined as the entity or organization established to earn profit by providing…

Q: What does this say about the company's profitability?

A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…

Q: How do profit potential and legal considerations affect a firm’scredit policy?

A: It refers to the policy which states interest rate and duration that are relevant to the funds…

Q: how to assess a company's success in using leverage to increase returns?

A: Leverage refers to the risk involved and the borrowed capital that is used to undertake a project…

Q: What is the firm value

A: EBIT = $20,000 every year in perpetuity Cost of equity (ke) = 15%Tax rate (t) = 40%Debt = NIL…

Q: What impact does goodwill have on the firm’sbalance sheet? On its income statement?

A: A type of intangible asset that defines the reputation and value of the firm in the market is known…

Q: What is a firm’s net working capital? And what does it tell you about the liquidity of the firm?

A: Working capital of the firm means net assets of the firm. Working capital can be find as total…

Q: Why is FCF an important determinant of a firm’s value?

A: The cash available with a firm after paying operating expenses and capital expenditure of the firm…

Q: What are the possible actions that a firm can take if it experiences a financial failure?

A: Financial failure of the firm could be resulted because of overspending, higher degree of illiquid…

Q: What is the relationship of WACC to the market value of a company?

A: A company's capital structure is the specific mix of debt and equity it employs to fund its overall…

Q: How will a company view working capital – positive, negative, or a necessary evil?

A: The difference between current assets and current liabilities is used to calculate working capital.…

Q: How can you estimate the business risk of a firm?

A: Beta is the systematic risk. As a company opts to make decision to the best of interest, it is…

Q: What do you meant by not for profit objective of the firm?

A: The sole purpose of any business organization is to earn profit. However, there are some…

Q: How does a firm value an asset?

A: Assets means resources of the business that the business owns. It may be tangible assets or…

Q: What might cause a firm’s intrinsic value to be different from its actualmarket value?

A: Intrinsic Value is one of the vital component used in valuation of a particular company. Intrinsic…

Q: What can you say about the market value of the company? is it positve or is negative?

A: In finance market value of a company is the worth of the company and the worth of the company is…

Q: Does capital structure influence the value of a firm? Why or why not?

A: The capital structure refers to the combination of different sources of capital in the capital base…

Q: What is working capital? How does working capitalrelate to the operating cycle?

A: Working capital: Working capital refers to the excess amount of current assets over its current…

Q: How does the value of a levered firm compare to the value of anunlevered firm that is otherwise…

A: When the company having debt in its capital structure it is referred to as a levered firm. When the…

Q: why do firms use non financial measures

A:

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

A: An optimal capital structure refers to the best mix of debt and equity used by a Company to finance…

Q: How financial synergy impact the firm's value

A: Financial Synergies: Financial Synergy happens at the joining of two businesses increases financial…

Q: Is capital maintenance-oriented towards proprietary theory or entity theory?

A: Given: The relation of capital maintenance.

Q: Why is the WACC (weighted average cost of capital) important? When is it useful to a company?

A: Weighted average cost of capital is important to determine the minimum required return of all the…

Q: What does the term hedging mean? Why do companies elect to follow this strategy?

A:

Q: How does the firm’s internal condition affect its actual capital structure?

A: The capital structure is the structure of mix of debt and equity which shows how a company has…

Q: which ratio can be easily identifiable to maximize the value of a firm

A:

Q: What is Hedging principle and how it can be used to manage the working capital of the firm?

A: Investment in current assets has been used to fund the company's working capital requirements.…

Q: Should a firm’s managers help investors improve their estimates of the firm’s intrinsicvalue?…

A: Introduction: Intrinsic value is nothing but the stock’s approximate market worth, extracted from…

Q: often defined as maximizing the va

A: Solution Concept The main objective of business               The business is carried out with a…

Q: er confirmatory value?

A: Predictive value : The knowledge has predictive value, which implies it may be utilised to forecast…

Q: Is the use of PE multiple significant in order to understand the value of a firm?

A: Financial ratios are one of the most important financial metrics that helps in evaluating the…

Q: What is the risk-return tradeoff that arises when a firm manages its working capital? Give tangible…

A: Risk is referred as the probability or chance, which has an outcome or actual gains of an…