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Q. What do you mean by Letter of Credit?
A letter of credit is an arrangement whereby a bank helps its customer to obtain credit from its (customer's) suppliers. When a bank opens a letter of credit in favor of its customer for some specific purchases, the bank undertakes the responsibility to honor the obligation of its customer, should the customer fail to do so.
Advantages of ARR: It is simple to calculate and easy to catch. With the help of this technique, direct comparisons among proposed projected of varying lives with no bu
Q. Problems in assigning weights? Problems in assigning weights: for determining the weighted average costs of capital, weight has to assign to the specific cost of the individ
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
What kinds of U.S. companies would benefit most from a stronger dollar in the foreign exchange market? Explain. U.S. companies which import goods from other countries would bene
Accounting to Budget: Accounting to budget is a commonly used term to describe how an organisation controls its accounting process. Typically, an organisation divides its re
Various Types of Strategies Different types of hedge fund strategies are discussed as follows: Relative Value of Strategies: Relative value strategies are also known as no
What is working capital? Working capital comprise of the current assets of the firm.
A company has total debt of $1,200 and a debt-equity ratio of 0.5. What will be the value of the total assets?
Dual Aspect Concept - Accounting Principle This is, no doubt, the basic concept in accounting. Under this concept, each transaction has got a two-fold aspect: (i) yielding
discuss the applicability of operating cycle in poultry industry
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