Briefly explain the reasons because of which companies must engage in working capital management.

Q: Was the phrase "working capital management" originally intended to refer to? Who are the accounts…

A: THE ANSWER:

Q: Explain what is the capital structure of a company.

A: Company raise money by different means to finance growth and operations of company.Combinations of…

Q: What are the financial resources of the company which are also kanown as working capital

A: Financial resources is a term covering all financial funds of an organization. They are part of…

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: What is a simple capital structure? How is EPS determined for a company with a simple capital…

A: A simple capital structure is a firm that has no outstanding securities that could potentially…

Q: What are the sources of capital that can generally be used to start and grow a business? Critically…

A: A company's capital is the money it has available to pay for day-to-day operations and to support…

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: how can a company can raise capital through the issuance of equities?Include the advantages and…

A: Equity Capital is a means of financing with the help of ownership capital. Equity capital can be…

Q: What is a working capital, and how does it differ from other types of capital? What role does it…

A: Business process are the sequential steps followed by the stakeholders to reach a certain goal. Each…

Q: Computation of cost of capital is significant part of the financial management to decide the capital…

A: The cost of capital is the minimum rate of return that a company must earn on its investments to…

Q: .Explain the importance of capital structure to a company

A: Capital structure means identifying the best mix of equity and debt in a company that maximizes the…

Q: Use the DuPont equation to show how working capital policy affects a firm’sexpected ROE.

A: The working capital policy affects a firm’s expected ROE is given as below, ROE is defined as the…

Q: a. Explain the description and show examples of the following terms completely and clearly: implicit…

A: The financial system of a nation includes different components such as financial institutions,…

Q: How will a company view working capital – positive, negative, or a necessary evil?

A: The difference between current assets and current liabilities is used to calculate working capital.…

Q: Explain why firms must correctly classify expenditures incurred as either capital expenditure or…

A: Capital expenditure is something which has been incurred on something that will provide benefits for…

Q: Contrast and compare sources of business finance and assess various determinants of the cost of…

A: There are different financing options available to the firm. It includes, preference shares, debt,…

Q: which Costs  are associated with various elements of working capital of companies

A: Meaning of Working Capital. Working capital is a tool to measure company's liquidity, short term…

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: Lists the long-term sources of financing

A: Finance is the most important part of a business.  Without finance the organization cannot achieve…

Q: Many banks and financial institutions use Economic Capital as a yardstick in allocating capital…

A: Capital allocation can be defined as a process in which the company’s profits are distributed and…

Q: olvency is a fir

A: Solvency : In simple words, Solvency refers to a corporation's capacity to pay down long-term…

Q: Which is more important to a company capital or O&M? Why?

A: Capital Expenditure Capital expenditure is one of the important  factors of the company.  It is the…

Q: Why is working capital management one of the most important and time consuming activities of the…

A: Working capital is a proportion of an organization's liquidity, operational effectiveness, and…

Q: how

A: M and M has given the theory of valuation of firm with no taxes and with taxes

Q: Describe about retain earning and paid in capital.

A: Retained earnings: “Retained earnings” are that portion of profits which are earned by a company but…

Q: Why is working capital management one of the most time demanding tasks for financial managers? Net…

A: The Answer:

Q: How do flotation costs affect the cost of capital?Are these costs about the same for each of…

A: Floatation cost is the cost that company incurs while issuing new equity. It makes new equity…

Q: What is a working capital? What is its importance in the business process?

A: Accounting is a way of recording money related transactions in the financial statements of an…

Q: Critically discuss the effect of increasing the amount paid upfront when corporations make capital…

A: Capital purchases refer to the expenses a company makes for buying new equipments, improving long…

Q: What are the different types of capital requirements that should be considered while estimating the…

A: Capital means the cash or assets which are used to be run or setup the new business and pay their…

Q: company’s weighted average cost of capital.

A: The weighted average cost of capital is the average cost of attracting investors, whether bonds or…

Q: EXAMINE THE IMPOTANCE OF WORKING CAPITAL TO A  BUSINESS OR COMPANY (Application of FASB…

A: importance of working capital are a follows

Q: Describe the method of determining the Company Cost of Capital?

A: Firms often operate their company using the capital generated from different sources. That involves…

Q: According to the theories, companies opt their capital structures to maximize the value of firm.…

A: Capital structure is referred to as the mixture of various sources of finance which are also called…

Q: 1. What are the components of a working capital? Is it important? Why or why not?  2. What is the…

A: 1. Working capital is the difference between the current assets of the company and the current…

Q: How do the managers estimate the opportunity cost of capital for a company?

A: The cost of capital is the opportunity cost (or best alternative rate of return) for the assets…

Q: Identify the concept of an optimal capital structure for a business firm.

A: We already know that a firm needs finances to run its business. Broadly we classify these finances…

Q: Describe the process of calculating the Company Cost of Capital?

A: Firms often operate their company using the capital generated from different sources. That involves…

Q: How can a company raise capital

A: A corporation or a company is a separate entity that is established legally and is identified as a…

Q: Discuss the concept of an optimal capital structure? 2- Distinguish between business and financial…

A: optimal capital structure is mix of equity and debt and also weighted average cost of capital.

Q: describe the different ways in which capital can be transferred from suppliers of capital to those…

A: Different ways in which capital can be transferred from suppliers of capital to those who are…

Q: How does accounting help the capital allocation process?

A: Capital allocation: A capital allocation is the process of allocating total capital amount into…

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.