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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.
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Why is the replacement value of assets method not usually used to value complete businesses? The replacement value of assets process is not often applied to complete business v
you would like to purchase a new car in 3 years.The current value of the vehicle you would like to purchseis 100000.The manufacturer of the vehicle has advised you,that the cost of
I need to get a good understandin about what this means?
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