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Why do we need to learn finance
The questions that you may thinking about right now are "Why do we need to learnfinance? Shall we not leave it to people who are going to specialise in finance?Finance will not help me in the area that I am going to work in, so why learn?" It is to say that knowledge of finance doesn't add any value to you. Is it so? Think about it.
When you get your pocket money from your parents, you don't go out and blow theentire money in one day because if you do, your parents aren't going to give you more money to last through that month. You quickly determine that you need to plan your expenditure so that money lasts throughout the month and you may in fact plan to save someof it. Those who don't get enough to meet their requirements, think about some clever means to raise more money (such as falling sick!). On the other hand if they need more money for the month due to certain special events (such as Valentine's Day) they can plan to borrow money for a month and repay in next month.
Describe how society's interests can influence financial managers. Sometimes the interests of a business firm's owners aren't the same as the interests of society. For illustr
What was the first argument against traditional approach The first argument against traditional approach was based on its emphasis on issues relating to procurement of funds by
Great Pumpkin Farms just paid a dividend of $3.50 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a 16 p
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Discuss the implications of the interest rate parity for the exchange rate determination. Answer: Presume that the forward exchange rate is roughly an unbiased predictor of the
Leveraged Buyout (LBO) Acquisition of an organization through the accumulation of 70 % or more of the organizations total capitalized debt.
Let us consider a bond with callable or prepayable feature. Figure shows the price/yield relationship of option-free bond and callable bond. The price yield
Discuss the different ways political events in a host country may affect local operations of an MNC. Answer: The answer can be organized based on the three types of political ri
My company paid an extremely high price for the acquisition of another company; the price was recommended by the valuation of an investment bank. We now have financial crisis. Is t
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