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Explain about the Valuing Securities
Objective of any investor is to maximise expected returns from his investments, subject to various constraints, primarily risk. Return is motivating force, inspiring the investor in the form of rewards, for undertaking the investment
Explain the implications of the deviations from the purchasing power parity for countries’ competitive positions in the world market. Answer: If exchange rate changes satisfy pu
Define the concept of a real option. Discuss some real options a firm can be confronted with when investing in real projects. A positive APV project is accepted under the supposi
Most of the time, an investor buys a bond between coupon payments. In such transaction, the buyer must compensate the seller of the bond for the
suppose perfect competition prevails in the market for hotel rooms. the current market equilibrium price of a stanar hotel room is 100 per night
The dividend is the part of the net income that the company distributes to shareholders. As the dividend represents real money, the net income is also real money. Is that true?
Auction Technique Auction is the most common method to sell Government Securities. Other methods include tap sales, syndication and book building process. Presently many countr
Q. Define the finance function? Is it a risk-return trade off? What is the basic role of a modern financial manager? What is the basic importance of finance function in the mana
Exam technique for analysing performance The below steps must be adopted when answering a question on analysing performance: Step 1 Review figures as they are and commen
Audit risk Obtain understanding of accounting and internal control systems. Sufficient to plan audit and develop effective audit approach. Professional judgement to
Board should encourage a strong control culture. Manager's bonus must not only be linked to company profits but also linked to internal control procedures being adhered to. There m
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