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Explain about the Financial risk
financial risk are presumed to be constant, changing cost of each type of capital, j, over time must be affected only by changes in the supply of and demand for each type of funds, j. Cost of each type of capital to a given firm compared to the cost to another firm (that is the inter firm comparison) can differ due to differences in the degree of business and financial risk associated with each firm because the riskless cost of the given type of funds remains constant. Different business and financial risk premiums are associated. With different levels of business and financial risk. These premiums are a function of business risk, b, and financial risk, f, of a firm. For intra firm (which is time series) comparisons, only differentiating factor is the cost of the type of financing, As business and financial risk are presumed to be constant an example may help to clarify these points.
Why does most interbank currency trading worldwide involve the U.S. dollar? Answer: Trading in currencies worldwide is in opposition to a common currency which has international
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BAGS, Inc. is considering an investment in a new project. The required investment is $1,000,000. After-tax net cash flows are expected to be $50,000 the first year and are expected
Problems in primary market?
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Q. Describe Concepts of finance function ? 1) The finance function in the business task in the providing funds needed by the enterprises on the term that one most favorable in
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