Long-term and short-term finance tends to be differentiated by: the amount of finance raised. the period of time the finance has to be repaid. whether the finance is debt or equity. whether the finance is internal or external.
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Question 5
Long-term and short-term finance tends to be differentiated by:
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the amount of finance raised. |
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the period of time the finance has to be repaid. |
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whether the finance is debt or equity. |
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whether the finance is internal or external. |
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- The discount rate used in a net present value analysis is the ________. A. rate of interest earned on a savings account B. rate of inflation C. rate of interest charged for debt financing of an investment D. required rate of return or the hurdle rateplease answer this question that is about short term debtWhat does the Excel argument Nper refer to? Number of periods of time for a loan or investment. The constant periodic payment required to pay off a loan or investment. Periodic interest rate. Present value of an investment.
- What is the difference between-1 accounting and Finance? answer this ?question with suitable example Compare and contrast present -2 .value and future valueExplain the nature of long term debt.Defined financials statement analysis (with two examples)? and What is the Time Value of Money and how is it related to finance?
- Q.4. Differentiate among the following: 1. Short term Financing 2. Medium Term Financing 3. Long term FinancingExplain required rate of return on debtQ4. Interest expense should be calculated based on interest rates and debt balances and by using a trend in interest expense or some other method. Choices: True or False
- What are the TWO sources of financing through LONG TERM DEBT?7. Time Value of Money: Amortized Loans An important application of -Select- interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is -Select- in the first period and -Select- over the life of the loan, while the principal repayment is -Select- in the first period and it -Select- thereafter. Quantitative Problem: You need $15,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 5 years, with the first payment to be made one year from today. He requires a 6% annual return. a. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much of your first payment will be applied to interest and to principal…Chapter 9 Homework Questions 1.What do we mean by financial structure? 2. What accounts in the statement of financial position are taken into consideration to calculate the cost of financing? 3. What is the meaning of economic value added (EVA)? What does it measure? Why is it important? 4. What is the purpose of calculating the cost of capital? 5. Differentiate between debt financing and common share financi