Explain the term direct finance

Assignment Help Finance Basics
Reference no: EM1366691

"If financial markets operated perfectly and without cost financial intermediaries would not exist. All finance would be direct finance." Describe what is meant by the term "direct finance" and state whether you agree or disagree with this statement. Explain why.

Reference no: EM1366691

Questions Cloud

Consummate-calculated risk : Describe an example of risk calculation found on the web and what risk calculation technique is illustrated by your example? Would you have employed a different risk assessment technique than used in your example, and why?
Generally accepted accounting principals : Some generally accepted accounting principals (GAAP) apply only to health care, and there are lots of health care organizations which use other comprehensive bases of accounting when GAAP doesn't apply
How project leader finds what user wants and needs : How can project leader find what user wants and needs. Point about observing the user is important step in gaining good understanding of the users needs.
Explain the term direct finance : If financial markets operated perfectly and without cost financial intermediaries would not exist. All finance would be direct finance. Describe what is meant by the term direct finance.
Effects of market shocks-price and quantity : For each of following changes, show/explain the effect on DEMAND CURVE and state what will take place to market equilibrium price and quantity (in the short run).
Marketing-related opportunities to healthcare : What do issues such as quality of service and enhancing the safety of patients present in ways of marketing-associated opportunities to a healthcare-related organization?
Explain two-bit system noninterference-secure : The initial state is not output (in contrast to the example). Is this version of two-bit system noninterference-secure with respect to Lucy? Why or why not?

Reviews

Write a Review

Finance Basics Questions & Answers

  Questions on high yield bond

What is the financial impact on a company when their debt rating is viewed as "High Yield"? What specific steps must a firm undertake to improve their credit rating under the current rating system?

  Project evaluation and screening methods

Discuss how excessive or exclusive reliance on other screening techniques may lead to similar problems? What is the effect of poor project-screening techniques on the firm's ability to manage its projects effectively?

  Find the value of the decedents gross estate

Assume decedent dies in 2006 and has interests in the following assets: $400,000 residence owned jointly with right of survivorship with her husband;

  Determine the speculative premium on the warrant

Suppose you can buy a warrant for $5 that gives you the option to buy one share of common stock at $14 each share. The stock is currently selling at 16 a share.

  Expect share you select to affect return

Would you expect share you select to affect return that you earn on your portfolio. Go through the method of working out why C is the best option for portfolio.

  What required rate of return for this stock

What required rate of return for this stock would result in a price per share of $40 and if Sonik has an earnings and dividend growth rate of 11%, what required rate of return would result in a price per share of $40?

  Details regarding annuity

Sam deposited $1,000 dollars today in a fixed-rate, tax-deferred annuity, which guarantees an 8% return with quarterly compounding. Find out the value of the annuity at maturity?

  Estimate the affordable mortgage and purchase price

Kim and Dan Bergholt are both government workers. They are planning purchasing a home in the Washington D.C. area for about $280,000. They estimate monthly expenses for utilities at $220,

  Prepare financial statements

Sherwood Corporation is using these financial statements to entice investors to purchase stock in the company. However, a recent FBI investigation revealed that the sale of real estate was a fabricated transaction with a fictitious Corporation.

  Explain what is the amount of the initial cash flow

Explain what is the amount of the initial cash flow for this expansion project - current manufacturing facility

  Compute the bonds price today and current yield

A newly issued corporate bond has twenty years to maturity. The bond has a coupon rate of 8% and pays interest semiannually. Also bond is callable in six years at a call price equal to 115% of par value.

  Hedging interest rate risk

A bond manager who wants to hold the bond with the greatest potential volatility would be wise to hold;

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd