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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 the variability in returns on assets and is affected by company's investment decisions. - Financial risk is increased variability in returns to common stockholders as a result of using debt and preferred stock.
Estimating the market value of a share The dividend expansion model suggests a method whereby share values can be estimated from information on the required return on equity an
1. Discuss the various techniques of cash management for an efficient working capital Management. 2. Discuss the MM Hypothesis of Capital structure and its importance in corpo
What is nondiversifiable risk? How is it measured? If not the returns of one-half the assets in a portfolio are perfectly negatively correlated along with the other half-which
Explain what a bond is and discuss its nature as a "fixed income" security.Discuss important terms in relation to bonds as the "price", "maturity", "current yield", "yield to matu
Wealth Maximization :- It is as well termed as value maximization or Net Present worth maximization. This schema is now universally accepted as an appropriate criterion for making
Now that we have seen how default-free theoretical rate can be extrapolated from the treasury yield curve, let us see how some other additional information, like forwar
What are some instances of restrictive covenants that might be fixed in a bond's indenture? An indenture might involve limitations on future borrowings, restrictions on dividen
What is Redeemable debt Company will have to re-pay the debt at redemption date or between the two redemption dates (i.e. 20X5/20X9, means debt can be redeemed any time betwe
Q. What do you mean by Cash Flow Ratios? Cash Flow Ratios: - Cash Flow Ratios are an additional device of cash management. Some important cash flow ratios are: (i) Cash Turn
Multicollinearity As the degree of correlation between the independent variables increases, the regression coefficients become less reliable. That is, although the independent
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