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Does high operating leverage always mean high business risk? Explain.
High operating leverage does not all the time mean high business risk. If the companies sales are quite stable after that the variation in operating income would be small even if the degree of operating leverage were large.
Can a business have a positive accounting profit and a negative economic profit? Please explain.
Why do financial managers calculate the marginal tax rate? Financial managers make use of marginal tax rates to estimate the future after-tax cash flows from investments. As th
Determine the objectives of Profit maximisation Profit maximisation remains one of the key objectives for the managers of the companysince many managers' compensations are lin
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A treasury strip can be sold in two parts based on its components. When the investor is empowered with a right to receive the coupon payments on sale of its treas
The process of valuing a callable bond is similar to that of an option-free bond, except for one thing - when the call option may be exercised b
Who owns a credit union? Explain. Credit unions are owned by their members. When credit union members place money in their credit union, they aren't technically "depositing"
Explain about the primary and secondary markets. Primary and secondary markets: A primary market is a financial market wherein new matters of financial securities (both s
Q. Explain Dividend Policy Decision? Dividend Policy Decision: - The financial management has to make a decision as which portion of the profits is to be distributed as dividen
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