User Account

All Pages

Business risk and high financial risk

Assignment Help Finance Basics
Reference no: EM13892651

Total risk is equal to business risk plus financial risk. Companies then manage total risk by balancing the two. A low risk business like a bank, can take a lot of financial risk. Banks are often financed with up to 92% debt. Deposits are amounts owed by the bank and therefore a form of debt. Up until the financial crisis, only a handful of banks had failed in the previous 12 months. On the other hand young high tech companies know that they have high business risk. These firms fail all the time. Therefore they finance with little or no debt.

What industry has both high business risk and high financial risk?

Reference no: EM13892651

Questions Cloud

Find a situation in which health care professional teetered : Your discoveries while researching the Tuskegee Project might put you in the mind that current medical practices are, for the most part highly ethical and only every now and then would you find a situation in which a health care professional or gr..
How ethnicity is linked to children development : Explain how ethnicity is linked to children's development (Psychological Ramifications of Poverty). Summarize the influence of technology on children's development
Show the format of a 24-bit memory address : Consider a byte-addressable computer with 24-bit addresses, a cache capable of storing a total of 64K bytes of data, and blocks of 32 bytes.  Show the format of a 24-bit memory address if the computer uses direct mapping.
Arctic cat''s current ratios compare to their industry : Key figures for the recent two years of Polaris and Arctic Cat follow.
Business risk and high financial risk : What industry has both high business risk and high financial risk?
Incorporate at least two research university of phoenix : Incorporate at least two research University of Phoenix library sources
What elements of your culture influence these schemas : What shortcuts (schemas, heuristics) did you use to form your inferences? How did these shortcuts help or hinder your decision-making process? What elements of your culture influence these schemas? Would a person from a different culture draw on a ..
Create a class called book defines properties title : 1. Create a class called Book defines properties Title, Author and Year.  Add a method called Display() that outputs the Title and Author 2. Create a class called BookTest that uses an object initializer to create an object of class Book (from step 1..
Multitude of differences with risk level : When investing in bonds, there are a multitude of differences with risk level, time to maturity, and specific provisions, etc. One such provisional feature is known as a sinking fund.

Reviews

Write a Review

Finance Basics Questions & Answers

  Bank of china has opened trading in the chinese currency

bank of china has opened trading in the chinese currency on the international financial markets. is this good or bad

  Show excel formula used and calculation

(Future value)  Albert Pujols hit 47 home runs in 2009. If his home-run output grew at a rate of 12 percent per year, what would it have been over the following 5 years? Show excel formula used and calculation

  Kads inc has spent 400000 on research to develop a new

kads inc. has spent 400000 on research to develop a new computer game. the firm is planning to spend 250000 on a

  Calculate the imputed interest on a 10 year zero-coupon

calculate the imputed interest on a 10 year zero-coupon 1000 bond in its second year given a yield-to-maturity of

  It anticipates that 30 percent of its customers will take

discount policy. stevens company presents the following informationcurrent annual credit sales24000000collection

  The year dividends of 60000 were taken out by the owners

given are the amounts of assets liabilities owner s equity revenues and expenses of aqua inc. at 123110. the

  What will the present value of the cca tax shield

what will the present value of the CCA tax shield when it disposes of the machine at the end of year 4? Assume that the relevant discount rate is 10%.

  Question regarding the michael porter five forces

Review Michael Porter's Five Forces. How would apply this important concept to your business idea? Your paper should be 2-3 pages in length and must be written in proper APA format. At least 2 scholarly references are expected.

  What is the purpose of the income statement

In 600-750 words, respond to the following: Managers within the firm, as well as the firm's owners and lenders, keep track of the firm's performance by reviewing its financial statements - income statement, balance sheet, and statement of cash flows...

  Integer programming model

Develop an integer programming model to maximize the NPV in this situation. Solve the problem in part (a) using computer software. Which of the three projects would be undertaken if NPV is maximized? How much money would be used each year?

  Explain what is the amount of the sales

Explain what is the amount of the sales that should be used when evaluating the addition of the lower-priced handbags?

  What is the cross rate between the yen and the peso

What is the cross rate between the yen and the peso; that is, how many yen would you receive for every peso exchanged? Round your answer to two decimal places.

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd