Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Describes Net Operating Income Approach to Capital Structure?
NOI (Net Operating Income Approach):- This is another speculation of capital structure which is propounded by 'Durand' and is just opposite to Net Income Approach. The real meaning of this approach is that the capital structure decision of a firm is irrelevant. Any alter in leverage will not lead to any change in total value of the firm. It signifies that the overall cost of capital would remain same whether the debt-equity mix is 50:50 or 30: 70 or 60:40. Therefore the total value of the firm the market price of shares and the overall cost of capital is independent of the degree of leverage.
Assumptions of NOI Approach:-
(i) The cost of debt is lesser than the cost of equity
(ii) There are no corporate or personal income taxes.
(iii)The business risk stays constant at every level of debt & equity.
I need your assistance on how to group the relevant data so as to help me in the data analysis
• Graph the Current and Quick Ratios for the five years. • Analyze observations of the trends you observed. • Support you analysis with information you observe from the Trend and
1 In the process of considering two job offers, Jill Saunders wants to determine which position would have the higher monetary value. Job 1 has a salary of $42,500 with $4,800 of n
Define the meaning of Overtrading When a company is trading at a very fast pace, it would be generating sales on credit with speed, so have a large volume of t
Explain Gresham’s Law. Answer: Gresham’s law considers to the phenomenon that bad (abundant) money drives good (scarce) money out of circulation. This type of phenomenon was fre
An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a
Evaluation: Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process wo
Illustrate the capital markets in maturity of the securities? On the basis of the maturity of the securities traded, capital markets can be introduced here: Capital markets
Define the balance of payments. Answer: The balance of payments that is abbreviated as BOP can be defined as the statistical record of a country’s international transactions ove
Q. Explain about pink book? This shows the various sub heads under which the lum sum amount sanctioned by allotment is to be spent and this indicates the works for which the al
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd