a. Explain the description and show examples of the following terms completely and clearly: implicit financial costs, explicit financial costs, private financial markets, public financial markets and cost of capital!

Q: nciples of Finance.

A: Every firm or corporation has some principles for running the business. There are also some finance…

Q: What is the vocabulary word for money that's in financial markets, and a rate of return for a…

A: The vocabulary word is the term for things generally used in the Financial market.

Q: “Capital budgeting has the same focus as accrual accounting.” Do you agree? Explain.

A:

Q: Distinguish between economic and financial capital.

A: Capital resource:  The equipment and goods that are being used for the purpose of generating other…

Q: relationship between financial reports and capital markets

A: Financial reports are information published by entities regarding their financial position for…

Q: Which of the following is NOT considered a finance activity?     Operations management assessment…

A: A company or a firm works with the combined efforts of all the departments of a firm. The different…

Q: Distinguish between a primary and secondary capital market and discuss the role played these markets…

A: Answer

Q: Explain the following statement: The optimal financial policy depends in an important way on the…

A: The easy it will be to sell an asset for generating cash, the more it will be feasible to utilize…

Q: Describe the methods used for analyzing the capital investments of organizations.

A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…

Q: what sense is a firm's WACC also the rate of return that should be earned on its investments?

A: Step 1   The WACC of a company is the overall needed return, which is the discount rate that should…

Q: Explain the meaning and composition of the "return" of a financial investment

A: Financial Investment Funds invested for the purpose of earning returns over a specified period of…

Q: Explain why opportunity costs and externalities should be included in capital planning but not sunk…

A: A sunk cost is a cost that has been incurred as a consequence of previous events and which may not…

Q: What are the differences between raising capital from a financial institution and raising finances…

A: Financial institution and Financial markets: Financial institutions can be defined as any company…

Q: Explain briefly what working capital and working capital management are and what they do. Explain…

A: The financial Ratios will be calculated by taking the numerical values that are taken from the…

Q: A qualitative factor (as opposed to a quantitative factor) that managment should consider when…

A: Qualitative factors are the ones which can be measured in quality. Where as quantitative factors can…

Q: How to determining optimal capital structure?

A: Optimal Capital Structure: It is the best debt and equity mix financing that minimizes the cost of…

Q: are and contrast the roles and functions of capital markets and

A: There are two types of market for raising money and trading of securities in the market capital…

Q: Briefly explain the over-investment problem from the perspective of the agency costs between…

A: Firms with both the debt and equity in the capital structure often face agency conflicts between…

Q: Explain why the cost of capital is measured on an after-tax basis why is use of a weighted average…

A: This question consists of two subquestions i.e.  (a) Explain why the cost of capital is measured on…

Q: Regarding the trade-off theory, capital structure is a trade-off between: O tangible and intangible…

A: The capital structure refers to the mix of various available sources of capital which is used by a…

Q: investment

A: solution. how to acquire and employ or invest funds

Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…

A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

Q: As part of his duties, if a finance manager of a company is working on the appropriate source of…

A: Financial management is the practice of collecting and managing cash flows. Cash management is vital…

Q: What is meant by the term “working capital management”?  What accounts are involved in working…

A: Working capital management: The title administration of working capital alludes to the…

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: A. Discuss main theories of financial intermediation and their rationale for the existence of…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Which of the following is NOT considered a finance activity?     Planning and budgeting…

A: There are various financial activities.

Q: How does the capital asset pricing model (CAPM) influence financial decisions regarding risk and…

A: CAPM is related to the connection between the securities and their expected returns. CAPM is…

Q: Which of the following is the social objectives of financial management? Select one: A. None of the…

A: Social objectives means the objectives which would satisfy the needs of owners or investors of the…

Q: Following the agency theory of capital structure, discuss how debt financing can be used as a…

A: The agency cost of debt is the conflict of interest that exists between a company's shareholders and…

Q: How are financial reporting and capital markets related

A: Financial reporting and capital markets are concepts that need to be understood. Generally,…

Q: The most appropriate weights to use in calculating a firm's cost of capital are the proportions of…

A: 1. The most appropriate weights to use in calculating a firm's cost of capital are the proportions…

Q: Name three factors that affect the cost of capital and are beyond the firm’scontrol.

A: Cost of Capital is the cost that has been incurred on the acquisition of capital or financing funds.…

Q: main characteristics of useful financial goals

A: The main aim of setting the financial goals is to achieve meaningful result that positively affect…

Q: Explain atleast 2 similarities and dissimilatiries between private and public finance?

A: Public finance can be defined as the management of activities associated with revenue, expenditure…

Q: Determining the source of finance comes under ____________________function. a. Investment Decision…

A: Liquidity management helps in estimating the revenue and costs in operating activities. Thus…

Q: The scope of conceptual framework for financial reporting concerned with Which of the following…

A: THE SCOPE OF CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING DEALS WITH :  1. THE OBJECTIVE OF GENERAL…

Q: As part of his duties, if a finance manager of a company is working on the appropriate source of…

A: An organization can involve following decisions. Investment decisions: it deals with the application…

Q: Explain briefly what the terms working capital and working capital management imply. Explain the…

A: The Answer:

Q: Capital budgeting techniques comes under which function of financial manager a. Tax Management b.…

A: Capital budgeting means where large and long term investment has to be made in project .

Q: Distinguish between a primary and secondary capital market and discuss the role played by these…

A: Every business firm needs finance to operate its business. Therefore, the capital market is the…

Q: Explain the use of Economic Capital in measuring risk among financial institutions and its…

A: Economic capital measure risk in terms of capital. It is necessarily the capital amount that a…

Q: Compare and contrast key role and functions of the capital markets with those of the money markets.

A: Capital markets are defined as the financial markets, which provides the platform for the buyers as…

Q: What are the differences between raising capital from a financial institution and raising finances…

A: Financial institution and Financial markets: Financial institutions can be defined as any company…

Q: Discuss how the concept rbitrage profit help estab- um in capital markets. Di:

A: The equilibrium of the stock market involves setting market prices such that supply equals demand…

Q: Discuss the Concept of capital in terms of finance comprehensively and the ways it is raised in…

A: Capital is basically a term for financial assets of a company, such as funds held in deposit or…

Q: . What are the components of a working capital? Is it important? Why or why not?

A: Working capital is the net of the current assets and current liabilities of a business. Current…

Q: Explain the meaning of the terms working capital and working capital management in a succinct…

A: Every business requires a sufficient amount of capital and working capital to ensure that the day to…