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What is trustworthy collateral from the lenders' perspective? Explain whether accounts receivable and inventory are trustworthy collateral.
Assets which are readily marketable, of stable value, and not similarly to "disappear" make for trustworthy collateral. Accounts receivable and inventory could meet up this test depending on their fixed characteristics.
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Explain the term "present value of the firm's operations" (also known as Enterprise Value ). What does this number represent? The present value of the company's free cash flo
Business forecasting menaing
Types of FRNs In an era of innovations, while changing needs and preferences of the investors trigger introduction of newer FRNs, the borrowers' funding specifications also nec
Short Term Solvency or Liquidity Ratio's CR: The Current Ratio is calculated by current assets to current liabilities and is the index of company's financial stab
Deficiency in Operation - This exists when a properly designed control doesn't operate as designed or when person performing the control doesn't possess the necessary authority or
decision criteria of profitability index.
Explain about the Financial risk financial risk are presumed to be constant, changing cost of each type of capital, j, over time must be affected only by changes in the supply
Long Term Solvency or Liquidity Ratio's DE: The Debt Equity ratio exhibits the relation that exists between debt and proprietor's fund and is considered a very im
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