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Capital market: The term capital market is used to denote all the activities of the primary and secondary markets. It can also refer to the market for equity and debt instrumen
For capital budgeting decision which cost is relevant For capital budgeting decision, composite cost of capital is comparatively more relevant albeit the firm may finance one p
Aggregates Method Under the aggregates method of constructing an index number, we could have unweighted aggregates index and the weighted aggregates index. Unweighted Aggr
Do these two problems in Excel. Balance Sheet and Income Statement. The following information is used for the first two problems. Problem 1 is the income statement and problem 2
Q. Explain Rate of the stock turnover? Rate of the stock turnover: this is high degree of the inverse co relation between the quantum of the working capital requirement and the
Assume that the treasurer of a company has an extra cash reserve of $1,000,000 to invest for six months. The six-month interest rate is 8% per year in the U.S. and 6% per year in G
Which is lower for a given company: the cost of debt or the cost of equity? Explain: Ignore taxes in your answer . The cost of debt is all the time less as compared to the cost
Define the meaning of rate of return on investment An investment project which provides positive NPV when its cash flows are discounted by cost of capital makes a net contribut
A firm's operating and financing decisions Risk also results from decisions made within the company. This risk is usually divided into two classes: - Business risk is th
Timing of Financial Reports: Just as the actual report requirements differ depending on the requirements of the stakeholder that will be using them, so too will the timing of t
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