Define financial flexibility.

Q: Define capital structure decision

A: The capital structure is an appropriate mixture of a firm's debt and equity used to fund its overall…

Q: Explain Financial Flexibility

A: Financial flexibility is the capacity of an organization to effectively manage changes in its…

Q: Differentiate between price risk and reinvestment risk.

A: Price risk is the risk of decline of the price of the investment or an asset after the underlying…

Q: What is financing feedback?

A: Introduction: Financing feedback is generated when interest expenditure is overestimated, reducing…

Q: Define the term the working-capital investment?

A: The working capital is known as the net working capital which is the measure of the company’s…

Q: Define the value maximization of firm goal and describe the relationship between this goal and…

A: Value Maximization can be additionally characterized as investors value maximization. Since a…

Q: Define the term internal rate of return?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: Define capital requirement ratio (CR)

A: Answer: Capital requirements are nothing but regulatory guidelines for banks that specify the amount…

Q: Explain the term Financing activities with an example?

A: Financing activities :

Q: What is the total investment approach?

A: Total Investment Approach: In the Total Investment Approach, there is a risk-return tradeoff in the…

Q: Define Money market

A: Answer: Money market is a market place where the short-term securities transactions are made. It…

Q: Discuss cost-benefit analysis and financial analysis tools

A: Answer: Cost-benefit analysis: It is nothing but a process of decision making that balances the…

Q: Define Liquidity Analysis?

A: Liquidity analysis is very essential as it shows the ability of the firm in paying short-term bills.…

Q: Differentiate operating leverage from financial leverage.

A: Leverage is the amount of fixed costs a company has in its income statements. Greater leverage leads…

Q: Explain Financial Engineering?

A: Introduction: Financial engineering is nothing but application of quantitative methods in financial…

Q: a. Differentiate between finance planning and management planning, with Example.

A: Financial planning  : Financial preparation is the process of deciding how an organisation can…

Q: Define financing activities

A:

Q: Derivation of capital asset pricing model

A: The Capital Asset Pricing Model (CAPM) relates the returns on individual assets or entire portfolios…

Q: xplain what is meant by maintaining financial flexibility.

A: Companies generally do plan for the cash needs and follow as per the budgets and plans to run the…

Q: Define the term s liquidity position?

A: Definition: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities…

Q: Describe the Investment-Pool Concept?

A: Investment pools are institutional elements that are pooled speculation structures, with the…

Q: Define Capital Asset Pricing Model (CAPM)

A: The CAPM or capital asset pricing model is considered to be a popular concept in finance. The main…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…

Q: Define the term s financial leverage?

A: Financial leverage means buying the asset by taking the debt. The company always uses leverage…

Q: Define Investment bank

A: Introduction: Usually, bank is nothing but a financial institution that pools the deposits by…

Q: What are some limitations of financial performance measures?

A:

Q: Explain held-to-maturity investment.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Explain Financial Leverage?

A: Companies going for purchase of assets have three options for financing. They are equity, debt &…

Q: Define Seller Financing?

A: Seller financing : Seller financing is real estate agreement which means seller financing the real…

Q: How important is document design in accouting and finance?

A: Document design in accounting and finance is very important as a person can understand the message…

Q: Define the term financing activities.

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: What is financial leverage?

A: Capital Structure:   It refers to the combination of debt and equity that constitutes the finances…

Q: financing and investment decisions.

A: Financial decisions are those decisions which are concerned with the financial matters of a…

Q: Define investors.

A: Investment refers to the idea of involving money into the purchase of goods or some asset that will…

Q: Define Market-oriented investors

A: Putting amount in a scheme to earn return is known as investment. Before making an investment,…

Q: What is a compensating control? Give some examples for finance and investment cycle account

A: Compensating Control: A compensating control refers to alternate measures that organizations can use…

Q: Define signaling theory (capital structure)

A: Capital structure: Capital structure is defined as mixture or proportion of all kinds of capital…

Q: Define Financial leverage.

A: Leverage: Leverage measures overlook the mixture of debt and equity which is required for analyzing…

Q: Explain Finance departmant function in an orgenization in full detail.

A: Financial management is the area of business management responsible for obtaining and effectively…