Does it ever make sense for a profitable company with positive cash flow to seek external financing? Why or why not?

Q: Is it financial expediency for firms to borrow?

A: The acquisition of debt funds by businesses is far more convenient than any form of funds and far…

Q: What is meant by the term ‘financial distress’. If we assume that financial distress exists, explain…

A: Financial obligations are liabilities of an entity towards outsiders such as suppliers, vendors,…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Securitization is a process in which various financial assets are merged to create an instrument,…

Q: Explain "free cash flows." Why do managers like to retain free cash flows instead of distributing it…

A: Free cash flows (FCF) equals the amount left with the company after the required payments to the…

Q: Does having excess amounts of cash means that the firm has maximized wealthy?

A: Firms maintain cash to operate smoothly so that there are no products in regular and day to day…

Q: True or false? Using the cash flow statement, as a financial control, is not necessary when your…

A: Step 1   A cash flow assessment is a crucial indicator of a company's health, profitability, and…

Q: Bank-based systems of financing non-financial companies are more effective than capital market-based…

A: Financial systems can help to keep domestic savings at home if they are well-governed. Financial…

Q: ROA and ROE are considered as ther performance evaluation tools for banks. Do they always move in…

A: ROA is defined as the (return on assets) it helps to determine the profitability of the company It…

Q: Why are financial intermediares so important to an economy?

A: Definition : In simple words, financial intermediaries refers to the individuals and entities that,…

Q: Would it ever be rational for a firm to borrow money in order to pay cash dividends? Explain.

A: The dividends can be paid by company on following  these rules: 1. Out of profits of the company…

Q: What is the link between securitization and the economic function of financial intermediaries? What…

A: Introduction: Securitization combines diverse financial assets into a single instrument that is then…

Q: What is the connection between securitization and the economic function of financial intermediaries?…

A: Introduction: Markets for the trade of financial securities are known as financial markets. These…

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: financial intermediaries play a crucial role in an economic crisis-they are responsible for both…

A: Financial intermediaries: Financial intermediaries are organization which are acts as a link between…

Q: What rate do investors use to discount the capital gains and cash flows of firms?

A: Discounted cash flow estimates the present value of an asset by using projected cash flows.…

Q: 1. Can a firm with positive net income run cash? Explain.

A: Cash is very important in the business and there is need of cash in business and no business can…

Q: Cash Flow and Early Exits Why can it be misleading to use a firm's working capital to discuss cash…

A: Firm’s working capital can be determined by calculating the difference between the current assets…

Q: B)      Analyze why, despite employing various investment appraisal techniques, large investment…

A: Capital budgeting- refers to the formal process used for evaluating potential expenditures or…

Q: financial strengths and weaknesses? What a

A: Financing refers to the procedure of raising funds or money from various sources such as banks,…

Q: Arguments against a robust financial market being the foundation of stable economic growth and…

A: As the name implies, financial markets are a type of marketplace where you may sell and purchase…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Introduction: Financial markets are markets where the exchange of financial securities takes place.…

Q: What are pros and cons of raising money with debt? What is an alternative and why might some…

A: When a corporation generates funds by issuing debt instruments, this is known as debt financing.…

Q: ROA and ROE are considered as the performance evaluation tools for banks. Do they always move in the…

A: Return on equity (ROE) and return on assets (ROA) are two of the most critical metrics to determine…

Q: Analyze the importance and scope of financial management in wealth maximization of an organization…

A: Financial management (FM) means managing the funds. It basically deals with two things: How to…

Q: What are the trade-offs in financing a company by owner versus non owner financing? If non owner…

A: Financing is the method through which a corporation funds its operations and business activities by…

Q: (1) What factors might lead a company to gainadditional funds through debt financing rather…

A: Financial Activities: Financial exercises are exercises that organizations embrace to assist with…

Q: How can a company expand itself out of business, and how can a finance management prevent this from…

A: There are various methods that are been used by the company in order to expand its business. A good…

Q: why do firms use non financial measures

A:

Q: What is free cash flow, and how does it work? If you were an investor, why could you be more…

A: When all operational costs and capital expenditures have been met, free cash flows represent the…

Q: Why is it important for a new business venture to prepare financial projections?

A: All the business planning is actually used to process for the preparation of the financial…

Q: Explain the theory behind the free cash flow valuation approach. Why are the free cash flows value…

A: The free cash flows valuation approach will be a theory for determining a company's intrinsic value,…

Q: What can I recommend to this company to increase its liquidity position?

A: Current ratio: It is one of the liquidity ratios which is calculated by dividing the current assets…

Q: hat is the contribution of fintech in developing a single financial market?

A: Fintech is the use of technology and computer and internet for the field of finance and banking and…

Q: Why are financial intermediaries a bigger and more important source of funds for investors than…

A: There are a lot of functions a financial intermediary generally performs . The most important is the…