Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
What is Business risk
It is related to response of the firm's earnings before taxes andinterest, or operating profits, to changes in sales. When cost of capital is used to evaluate investment alternatives, it is presumed that acceptance of the proposed projects won't affect the firm's business risk. Types of projects accepted by a firm can greatly affect its business risk.
If a firm accepts a project which is considerably more risky than average, suppliers of funds to the firm are quite likely to raise cost of funds. This is due to the decreased probability of the fund suppliers' receiving the expected returns on their money. A long-term lender would charge higher interest on loans if the probability of receiving periodic interest from the firm and eventually regaining the principal is decreased. Common stockholders would require the firm to increase earnings as compensation for increases in the uncertainty of receiving dividend payments or ably appreciation in value of their stock.
Determine the calculation of materiality For example: Turnover 1% -1.5% Net assets 1% -2% Net profit 2% -6% Whatever numbers are selected they would be based on r
Banks like to make short-term, self-liquidating loans to businesses. Why? Banks like can see where the funds are likely to come from such that the borrower is able to use to m
How would you explain transaction exposure? How is it different from economic exposure? Answer:Transaction exposure is the sensitivity of comprehend domestic currency values of
What is Marginal cost of capital Marginal cost of capital, by contrast refers to incrementalcost associated with new funds raised by firm. Marginal cost is the specific conc
If normal operating revenues are inadequate to repay the debt, liquidation of collateral may be necessary. Corporate bonds can be either secured or unsecured by c
The horizon price can be determined by incorporating Option-Adjusted Spread (OAS) into a total return analysis. But this requires a valuation mo
Geographical Classification of Mutual Funds : Nations' boundaries provide territorial restrictions on the sale and purchase of mutual fund units or shares as is the case in com
#The following items are found in the The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000.
ABC Ltd. Produces electronic components with a selling price per of Rs.100. Fixed cost amount to Rs.2,00,000/- 5000 units are produced and sold each year. Annual profits amount to
What are the assumptions of MM(Modigliani Miller) approach?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd