What is breakup value?

Q: Define breakup value

A: The breakup value is the valuation of the company for liquidation in the market. It is best known as…

Q: What is asset and liability management?

A: The process of ALM (Asset and liability management) is the process used to manage financial risks…

Q: What is physical asset market?

A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…

Q: WHAT DOES BREAK-EVEN ANALYSIS EXPLAIN?

A: Break Even - Break even is the level of sales wherein the total cost = Total revenue, in simple…

Q: Explain renewal probability?

A: Answer: Renewal probability is nothing but the average percentage of renters in a building that is…

Q: What is nonoperating current assets?

A: Non-operating current asset: It could be a type of current resources or assets that are not basic to…

Q: What is the difference between the Cumberland Gap and GAAP?

A: Answer:-  Difference meaning:- Difference is an important notion in philosophy, referring to the…

Q: What is internalization?

A: Internalization: It happens when an individual directs an exchange itself, as opposed to sending it…

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 is downsizing?

A: Downsizing: The process of downsizing is also termed as rightsizing is an approach to integrate and…

Q: What is lessor?

A: A lease is the agreement between two individuals. Under the lease agreement one individual provide…

Q: What is Unsecured financing?

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

Q: What are some motives for divestitures?

A: The question is based on the concept of divestiture strategy, which is used by company to overcome…

Q: What is nonoperating assets?

A: Non-operating assets are the assets that are not required or in use for normal business activity.…

Q: Define the term Loss Contingencies.

A: A loss contingency is incurred by the business based on the result of a future event, such as…

Q: What is a break-even point and how is it calculated?

A: Break-even point: Break-even point is defined as a situation where a firm’s expenses and revenues…

Q: Define reinvestment rate risk

A: Reinvestment means investing without withdrawing the benefits (or) interest from the fund so that it…

Q: What is securitization?

A: Introduction: Finance reflects a broad variety of spaces where decisions can be taken relative to…

Q: What is discounting and compounding? What is the difference between them?

A: We need to use the equation of time value of money to explain the concept of discounting and…

Q: wHAT IS PRESENT VALUE?

A: Present value also known as PV is the value of a future sum of money discounted at specified rate of…

Q: What is liquid asset?

A: A liquid asset can be described as the asset which can be sold into the market easily and can be…

Q: What is the meaning of break-even point?

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: What is an Acquisition costs?

A:

Q: What is the reinvestment rate assumption when using MIRR?

A: Modified Internal Rate of Return: This method is used to rank investments or projects for an…

Q: How do fixed asset systems differ from purchases systems?

A: Definition: Purchase system: The identification and procurement of the inventory needs for the…

Q: When are loss contingencies recorded?

A: Definition:   Contingent liability: This is an uncertain obligation which might be incurred on a…

Q: What is Asset Management?

A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…

Q: What is Temporary financing?

A: There are various sources of temporary financing which are as follows: a) Commercial paper b) Bank…

Q: asset turnover ratio?

A: Asset turnover ratio = Sales/((Total assets at the beginning of the year + Total assets at the end…

Q: What is the discounting process?

A: Discounting: It is the process where the bill is given to a bank to get the bill discounted before…

Q: Explain the Redemption process?

A: The question is based on the concept of redemption, which is mainly used for repayment of fixed…

Q: Define risk-free asset?

A: Risk-free means that anything which does not have any kind of risk associated with it. They are free…

Q: How can we determine the Break-Even Resale Value?

A: How to determine the Break -Even Resale Value?

Q: . What is its present value?

A: Introduction: Compound interest can be defined as the interest on either a loan or a deposit which…

Q: What is the maximum loss protective put? R

A: Put option: This option holder will have right to sell a stock, but it is not an obligation to sell…

Q: What is Profit and Loss (PNL)?

A: A business organisation is established with an objective to make money and increase the worth of the…

Q: How does compounded interest work?

A: compound interest : it is the interest on loan calculated based on principal and interest.

Q: What is financial distress costs?

A: Financial Distress is a situation in which an individual or an organization is not capable enough to…

Q: What is original maturity?

A: The maturity period of a security is the time period that represents a securities life. It is the…

Q: Define Losses

A: Losses are referred as the one-time elimination or decrease in value of asset in the business. It is…

Q: What is merger waves?

A: A merger is an agreement under which two existing companies unite into one new company. Mergers are…

Q: What are the strengths and weaknesses of infrastructure as an asset class?

A: Infrastructure as an asset is an investment in services, installations, and facilities. There are…

Q: What should the transfer price be and why?

A: Given that: Transfer price as proposed by Top Division = $256 Price that is charge to outside…

Q: What is asset specificity?

A: It is a term which is specially used to depict the inter party relationships amongst transactions