Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Risk of default influence the rate of interest?
The bank offering the loan to Blin will make an assessment of the risk that the company might default on its loan commitments and charge an interest rate that reflects this risk. Ever since Blin is listed on a stock exchange it will be seen as less risky than an unlisted company and will pay a lower interest rate as a result. The period of time so as the company has been listed may as well be an influential factor.
Since Blin has expanded sales considerably and relies heavily on overdraft finance it may be in an overtrading situation. This could raise the risk of default and so increase the rate of interest charged on the loan. The bank would require to be convinced through financial information supporting the loan application such as cash flow forecasts that Blin would be able to meet future interest payments and repayments of principal.
Equity Theor y This theory proposes that individuals measure their out- comes/input ratio. Equity theory distinguish that inspiration is not the outcome of an absolute
Abnormal Earnings Valuation Model Abnormal Earnings Valuation Model is a method to analyse the value of the firm. The value of the firm can be the sum of three components - the
Explain why warrants are rarely exercised unless the time to maturity is small? Warrants are hardly ever exercised until the time to expiration is small because the market pric
discuss the applicability of operating cycle to poultry business(consider broilers)
What are number of factors that influence the shape of the yield curve? There are some of factors which influence the shape of the yield curve as follows: (1) Expectations
Does your company have a cutting-edge product idea that will blaze new trails in its industry? Is it properly retiring out-of-date products and keeping current with new consumer de
Why is the coefficient of variation often a better risk measure when comparing different projects than the standard deviation? While we want to compare the risk of investments whi
How would you describe the fact that China emerged as the second most significant recipient of FDI after the United States in recent years? Answer: China attracted a large deal o
The asset that acts as a collateral for an asset-backed security can either be an amortizing or a non-amortizing asset. In an amortizing asset,
the importance of a balanced capital structure and the problems which are associated with high levels of gearing
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd