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What are the Characteristics of the financing decision There are two characteristics of the financing decision. First, theory of capital structure which illustrates theore
What is the decision rule for accepting or rejecting proposed projects when using net present value? When going with the net present value decision rule any project with a net
Define the safety and soundness implications of mergers? A: No. All mergers need regulatory approval and are subject to intense examination through regulators. If anything, the r
What do you understand by financial viability of the organization? 2 : Define Following accounting and financial terms: Asset Liability Equity Income Expense
Account balance - Inherent risk At account balance / class of transaction level Balances susceptible to misstatement. History of errors. Complexity of transac
Is there an optimal capital structure? What is it and how can it be calculated? There is no optimal capital structure. Capital structure is a variable which depends on the incl
Define the market segmentation of the term structure of interest rates. Market segmentation: And also the investors’ expectations regarding future interest rates and thei
Explain the four fundamental rights of ownership A shareholder, by virtue of being an owner, is generally entitled to four fundamental rights of ownership: 1. Claim on a sha
The minimum value is the lower limit for the market value of a convertible bond. It is equal to the greater of the conversion value and the straight value. We can
What is the Trade payable days (turnover) Year-end trade payables/Credit purchases (or cost of sales)x 365days This is the length of time taken to pay suppliers. The rat
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