Explain what the companies should do with their profits, conditional to the availability or absence of highly profitable investment opportunities.
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Q: Compare and contrast the unit trusts and the exchange traded funds.
A: Given, We are required to explain the comparison between unit trusts and (ETF's).
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A: The expected return on a portfolio is the weighted average of the expected return s of the…
Q: The asset's market risk premium is
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Q: The following information is available on two mutually exclusive projects. Project…
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A:
Q: What factors affect accounts payable turnover ratio?
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A: Interest rate = 5% Loan amount = $5,000 Time period = 10 years
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A: The answer is Yes. Morty is ready to buy that apartment.
4a) Explain what the companies should do with their profits, conditional to the availability or absence of highly profitable investment opportunities.
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Solved in 2 steps
- Does the successful investment decision increase a company's market value?ASAP What is more important for a firm–profit maximization or value maximization? What issues orconflict of interest can come up between owners and managers and how can they be solved?How do profit potential and legal considerations affect a firm’scredit policy?
- explain how the idea of value creation under stakeholder theory differs from that under positive accounting theory.Which is also known as wealth maximization? a. Value Maximization. b. Stakeholder Theory. c. Profit Maximization. d. Product Maximization.Explain the following statement: The optimal financial policy depends in an important way on the nature of the firm's assets?
- What is a capital investment and why do companies need to evaluate whether to make the investment or not?Is it realistic to believe that an optimal capital structure exists or might be achieved by a company?What would be the business expectations when working with the added offer? What are the advantages and disadvantages of an aggregate offer?