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If dividends paid to common stockholders are not legal obligations of a corporation, is the cost of equity zero? Describe your answer. Even though common stockholders do not com
What is the investment opportunity schedule (IOS)? How does it help financial managers make business decisions? The investment opportunity schedule illustrates graphically pro
Difference between Debtcapital and Equity capital Debtcapital comprises: Long-term loans (debentures, loan stock etc.) Preference share capital May also in
Q. Can you explain Dispersion method? Dispersion method help to assert risk in receiving a return on investment. The greater the potential dispersion, the greater the risk. One
Q. Explain about Loans - Forms of Bank Finance? When a bank makes an advance in lump-sum against some security it is called a loan. In Case of a loan, a specified amount is san
European Community (EC) An economic alliance, evaluated in 1957, designed to encourage trade and economic cooperation between its members. The EC is also called the European
What risks are associated with direct foreign investment? How do these risks differ from those encountered in domestic investment?
Q. Major Risk Return Decision Areas? 1) Financial Analysis and Control: This area is concerned with the Financial Statements, i.e. Income Statement, Balance Sheet, Funds Flow S
Why does money have time value? Positive interest rates point out that money has time value. While one person lets another borrow money, the first person needs compensation in e
The secondary market is a market where the investor purchases a security from another investor rather than from the issuing corporation. This market is secondary
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