What is net operating working capital? Why does it exclude mostshort-term investments and notes payable?

Q: What distinguishes a capital investment from other investments?

A: Investments: It is the method by which an investor increases his value over some time for future…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: What is operating capital, and why is it important?

A: Answer: Companies need funds to acquire net operating assets and to run day-to-day business…

Q: how to arrive at earnings before paying the interest cost under the current capital structure

A: From Company data you go income statement of company

Q: How does the "Net Operating Working Capital"  differ  from    "Net Working Capital "? (write only…

A: Net Operating Working Capital: It is the difference between the total long period assets and total…

Q: What would you choose? Other investment assets or Alternatives to fixed income and equities

A: Allocation of the investment is a much wider and troublesome task. the proper allocation may lead to…

Q: What is issued capital? How does it differ from Authorized capital?

A: Company needs the funds for business purpose. Hence, Company raise capital.

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: In general terms, what is the Capital AssetPricing Model (CAPM)? What assumptions weremade when it…

A: CAPM: The capital asset pricing model (CAPM) is a method utilized to determine a hypothetically…

Q: Who are the providers (savers) and users (borrowers) of capital?

A: The providers are known as savers and the users are known ad borrowers of capital are given below…

Q: what is the difference between paid in capital and retained earnings

A: The paid in capital and retained earnings are the part of statement of shareholders equity.

Q: What is permanent net operating working capital?

A: Permanent net operating work capital is also referred to as fixed work capital. Continuous work…

Q: How much is the total expense? How much is the net income? What is the balance of the ending…

A: Accounting equation of the business says that total assets must be equal to total liabilities and…

Q: categories of paid in capital

A: The shares paid by the equity shareholder’s equity section are known as paid in capital. The capital…

Q: How does the Paid-in capital consist primarily of?

A: Share capital of the company means all funds raised by the company in exchange of shares.  Shares…

Q: What does the rate of return on total assets measure, and how is it calculated?

A:

Q: What is net operating working capital (NOWC)?

A: Working Capital The working capital (wc) is a financial term that represents the operating liquidity…

Q: Should short-term

A: The cost of capital is the rate of return that is expected by the firm to earn from its investment…

Q: what is the return asset that is used in financial statement analysis?

A: Here in this case we need to understand the meaning of return on asset ratio of financial statement…

Q: What is net investment in operating capital?

A: The Net investment in operating capital is a two-part study that discusses two various types of…

Q: What is the price paid to borrow debt capital called?

A: The amount that is borrowed by the company from financial institutions, banks, or by issuing the…

Q: As per which approach of the capital structure, the overall cost of capital is unchanged because of…

A: As per the net operating income approach, the firm's overall cost of capital is not affected by the…

Q: Which concept is applied to net income and other comprehensive income? A. Borrowed Capital B.…

A:

Q: When should the investment in working capital be treated as capital expenditure?

A: Working capital:   It is the form of capital used by the business for day-to-day operations. Working…

Q: What is meant by capital structure and how is it different from financial structure?

A: Capital structure of the company can be defined as the combination of various sources such as debt,…

Q: How does the capital asset pricing model (CAPM) influence financial decisions regarding risk and…

A: CAPM is related to the connection between the securities and their expected returns. CAPM is…

Q: Describe about retain earning and paid in capital.

A: Retained earnings: “Retained earnings” are that portion of profits which are earned by a company but…

Q: Is this a right formula? Market Value of Equity = Market capitalization - cash and investment +…

A: Market value of equity and market capitalization are both same and is calculated as number of shares…

Q: Define paid-in capital

A: Definition: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the…

Q: Why is the after-tax cost of debt, rather than its before-taxrequired rate of return, used to…

A: The mix of equity and debt is a business organization is known as the capital structure of the…

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: The user cost of capital does NOT depend on a. The real interest rate b. The unit price of capital…

A: The question is related to Cost of capital. The cost of capital is the minimum required rate of…

Q: Why does the interest in the original investment or the capital cost is included as a cost in the…

A: The annual worth method is the method in which all the cash flows are equally distributed across the…

Q: What would you choose? OTHER INVESTMENT ASSETS or ALTERNATIVES TO FIXED INCOME AND EQUITIES

A: Portfolio investments: Portfolio investment is the type of investment in which various types of…

Q: purpose for capital analysis

A: Capital analysis is the study of capital structure of a business entity.

Q: How is the CAPM (Capital Asset Pricing Model) related to valuation?

A: The relationship between systematic risk and expected return on assets, particularly equities, is…

Q: What are the Capital gains and capital losses?

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: Explain the term Return on Invested Capital?

A: The formula used to compute return on invested capital:

Q: What is net operating capital?

A: Operating capital is referred as the cash used for day to day activities in companies. Operating…

Q: What is Capital gearing and how might it be calculated?

A: Meaning of Capital Gearing  Capital gearing is the ratio between total equity and total debt ( Fixed…

Q: How does accounting help the capital allocation process?

A: Capital allocation: A capital allocation is the process of allocating total capital amount into…

Balance of Payments

BOP is categorized into the following three components: