Why are retained earnings not a free source of finance? If so, why are they nonetheless such a popular source of finance?

Q: What types of decisions do people in finance make?

A: Finance people in the company take decisions with the aim that the outcome of the decision is…

Q: How much is the gain on debt restructuring?

A: Given data,   Old liability: Principal=P9,000,000 Accrued Interest=P810,000 Interest Rate: 9%   New…

Q: In finance, explain how the DuPont system of analysis breaks down return on assets?

A: EXPLANATION:- Financial performance is calculated by multiplying a corporation's profitability by…

Q: What is the purpose of valuation in terms of financ

A: Introduction : In simple words, finance refers to gathering of money by one entity or individual…

Q: Which is more important from a finance perspective-net income or operating cash flow? What is the…

A: Net income is calculated in the income statement whereas and operating cash flows are calculated in…

Q: Discuss the concept of capital in terms of finance and the ways it is raised deliberately.

A: Capital is form finance.Money is raised through different resources and used for doing business over…

Q: What is off-balance-sheet financing? Why might a companybe interested in using off-balance-sheet…

A:

Q: What is signalling Theory in finance

A: Signalling theory is nothing but based on the assumption that information is not equally available…

Q: What is capital rationing, what conditions lead toit, and how should it be dealt with?

A: Capital budgeting is a process in which capital projects are assessed in terms of their viability…

Q: High-risk High return is one of the laws in finance, what does that law really mean? Is there a way…

A: Risk-Return trade off is the theory which explains that greater is the risk of investing in a…

Q: What distinguishes a money market instrument from other financial instruments? Please give us a wide…

A: The money market is the market where buyers and sellers engage in purchasing and selling short-term…

Q: What allows financial institutions to generate a profit? What are the conditions under which their…

A: THE INTRODUCTION: The marketplaces where financial assets and instruments are traded and the sites…

Q: What are annuities, growing annuities, perpetuities and growing perpetuities. What are the…

A: Annuity is a sequence of equal payments that take place over a fixed number of periods. Payments…

Q: What is the compensation for price risk in finance? How do they arise and what issues arise due to…

A: Price risk: Price risk can be defined as the risk that price of a security may reduce. This risk is…

Q: What's the connection between financial intermediaries and securitization? When securitization moves…

A: This question explains about the connection between financial intermediaries and securitization

Q: Explain how behavioural finance is related to market anomalies

A: Behavioural finance is the study of the behaviour of investors in making investment decisions.…

Q: Explain why there is a cost to using reinvested earnings; that is,why aren’t reinvested earnings a…

A: Introduction: Reinvested earnings are the share of direct investors’ earnings from direct…

Q: What do you mean by non quantifable factors ? (Corporate Finance)

A: Quantifiable factors in corporate finance refer to the financial numbers that defines the company’s…

Q: What is the primary role of the financial market?

A: Financial market is a place where trading of various securities such as stocks, bonds, forex,…

Q: How banks can improve their return on equity and what are its negative externalities.

A: RoE is ubiquitous in banks, serving as both an indicator of overall performance and a means of…

Q: What is the meaning of FINANCING in the financial market?

A: Financial market is a marketplace where trading of securities takes place. Securities include bonds,…

Q: financial gain

A: ANSWER- ECONOMIST  The Economist online offers authoritative insight and opinion on international…

Q: What is the significance of Financial Management? What are the advantages and disadvantages of…

A: Financial management: It is the process of organizing, collecting, managing, and distributing funds…

Q: Do we utilize the historical costs of existing debt and equity to compute the cost of capital, or do…

A: The Answer

Q: Why is it advantageous for a company to finance its receivables?

A: Accounts receivable is the amount due to a firm for the use of goods and services but not yet paid…

Q: In finance, how essential is accounting?

A: Accounting is recording of the transactions occurring in the company. Accounting is very essential…

Q: Why valuation is so important in finance?

A: Finance is a very vast term which is mainly used for managing the money. The main functions of…

Q: What do we call the cost that a borrower must payto use debt capital?

A: Debt capital is the capital that is borrowed from various financial institutions or other lenders…

Q: Why understanding time value of money is important in finance?

A: Time Value: - It means money has a time value. The value of money today is more than the value of…

Q: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…

Q: What is free cash flow, and how does it work? If you were an investor, why could you be more…

A: When all operational costs and capital expenditures have been met, free cash flows represent the…

Q: Which type of financial market is more prevalent: direct finance vs indirect finance. What are the…

A: Financial markets are the places and medium through which the trading (purchase and sell) of…

Q: What is "Intermediation" and why do we use Financial Intermediaries, instead of direct finance, for…

A: Financial intermediary is the organization which acts as a link between the investor and the…

Q: Interest rates are important to financial institutions since an interest rate increase will decrease…

A: The interest rate is the amount charged by a lender to a borrower for the use of assets on top of…

Q: What is a good capital structure? Are low debt ratios always favorable?

A: The capital structure of a corporation is the exact combination of debt and equity used to support…

Q: What are the major economic functions of the interest rate? How might the fact that many businesses…

A: Interest is the price paid by the borrower for using the money borrowed from the lender.

Q: WHY IS EQUITY MORE EXPENSIVE THAN DEBT?

A: Equity is owner's equity or shareholder's equity. It represents the value that would be returned to…

Q: What are the concepts of finance and money from the perspective of investors and consumers?

A: Solution- Consumer Finance Perspective-  A client continuously needs to meet his desires with…

Q: What are the importance of Financial Market?

A: Financial Market: It is the market where  financial securities and derivatives  are traded by people…