1. Explain briefly on “Relevant Cost & Irrelevant Cost”. 2. “What is Financial Leverage”? Explain with appropriate illustration. 3. Explain the cocept of “Systematic & Non-Systematic Risk”. 4. Why is preference capital considered as a hybrid source of financing?

Q: What are some of the risks involved in short-term vs. long-term financing ?

A: Financing refers to providing or borrowing capital so as to run the operations of the business…

Q: How would you use financial statement analysis?         Is there one ratio that you feel is more…

A: Financial statements give ideas about performance of company within accounting period.We can compare…

Q: There are two best source of financing the flexibility and Risk. How may one determine the best…

A: Source of financing: It means provision any business entity makes to cover it daily operational…

Q: Define the terms, or give short explanations.       -dollar return -equilibrium -financial…

A: 1. Dollar return is the real profit or loss an investment makes over a specific time period, given…

Q: Where are Financial costs and Dividends considered in a scenario analysis? Just a simple answer

A: Introduction :  A scenario analysis is a tool used to assess the potential outcomes of a given…

Q: Please answer the question as follow? Profit Maximize and Wealth Maximize, what is difference?…

A: financial management is important because it helps organizations plan, organize, direct, and control…

Q: why is there a need to use different financial tools and techniques?

A: Financial statement analysis- It is the process of reviewing and analyzing financial statements to…

Q: Based on the market value ratio, which ratio determine stability, earning power and capital? Explain…

A: The market value ratio is the ratio on the basis of market value and some specified performance…

Q: Discuss the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APM) of Roll and…

A: Two pricing models namely CAPM and APM have to be discussed and differentiated.

Q: Other than CAPM what other model can be used in valuing equity and WACC. Also list the assumptions…

A: The financial information can be analysed and presented using various types of models and frameworks…

Q: Are the financial projections realistic and healthy?

A: Estimating things before the real cost and revenue incurred is known as financial estimation.…

Q: This is a generalized framework for analyzing the relationship between risk and return: a. capital…

A: Risk refers to the uncertainty related to the investment within the future. Risk arises within the…

Q: Does net debt ratio provide useful information to the investor? Are the NonGAAP measures, ROCE and…

A: Investors are the resources who bring their capital to the company with an intention to earn the…

Q: What are the two different formulas used to Calculate the degree of financial leverage (DFL)?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: lain the relationship between return on equity (ROE), return on asset (ROA), and leverage effect.…

A: Return on equity and return on assets shows how much is the profit earned by the company and are…

Q: The W.A.C.C. is a :  a Composite opportunity cost metric  b Simple opportunity cost metric  c…

A: The overall cost of capital, also known as the Weighted average cost of capital (WACC), is the…

Q: , How is the ability-to-pay principle (c) different from the benefit principle? Briefly discuss the…

A: Introduction:-  Ability to pay—A tax fairness idea that asserts that persons with various levels of…

Q: According to Capital Asset Pricing theory (CAPM), in a competitive marketplace: Group of answer…

A: Capital Asset Pricing Model(CAPM) is an investment tool used to determine the fair valuation of…

Q: Discuss the main assumptions of the Capital Asset Pricing Model (CAPM).

A: The Capital Asset Pricing Model (CAPM) is a widely used financial model that calculates the expected…

Q: Does net debt ratio provide useful information to the investor? Are the NonGAAP measures, ROCE and…

A: Investors are the resources who bring their capital to the company with an intention to earn the…

Q: The cost of capital is a hurdle rate. Is this statement true? Why or why not?

A: The question is based on the concept of minimum required rate for any project . Hurdle rate is the…

Q: True or False Investment bankers and other valuation professionals often utilize relative valuation…

A: Long term investments are the investment or assets that are beneficial for the firm for a number of…

Q: The Capital Asset Pricing Model is usually adopted in a variety of circumstances but it does have…

A: Capital Asset Pricing Model: The relationship between expected return of a stock  and systematic…

Q: What is Basic Calculations of Financial Leverage?  Please provide example.

A: Financial Leverage:It represents that how a company uses its debt to acquire assets. It also shows…

Q: The capital asset pricing model expresses the cost of equity as a function of a return on riskless…

A: The term capital structure refers to the structure of debt and equity financing in the company. A…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: apital gain yield (CGY) can be either positive or negative.   Select one: True False

A: Capital gains yield is the percentage increase in the value of an investment. It's calculated by…

Q: Asset pricing Models provide a logical basis for computing the risk premiums and determining the…

A: Capital Asset Pricing Model (CAPM) is tool used to calculate the systemic risk of a asset. CAPM…

Q: Can someone give an example or scenario about the following:  1. Capital Asset Pricing Model2.…

A: 1.

Q: Which one of the following is an internal characteristic that can affect the value of an investmen…

A: Internal Characteristics mean factors within the organization. It excludes political events,…

Q: what is the efficient market hypothesis. What does it say, if any, about individual financial…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: What is the trade-off theory of capital structure?How does it differ from MM’s theory?

A: Trade off theory of capital structure: This is a theory in which the company decides on the ratio of…

Q: What is the crossover rate, and how does it interact with the costof capital to determine whether or…

A: The rate at which the net present value (NPV) of 2 ventures is equivalent is the crossover rate…

Q: True/False. The optimal amount of debt produces the highest weighted average cost of capital. Group…

A: Solution- The optimal amount of the debt produced the highest weighted averagecost of capital.-False

Q: What are some of the problems is using AFN equation to estimate AFN rather than the pro-forma…

A: AFN (Additional funds needed)=Projected increase in assets-spontaneous increase in liabilities-any…

Q: Why is the cost of capital sometimes referred to as a “hurdle rate”?

A: Cost of capital is the cost of financing a business, investment or a project. Cost of capital is…