Explain Initial Capital Contributions with example?

Q: Why study financing?

A: Borrowing, the usage of cash balances, and various other operations are used to fund a deficit or a…

Q: Define the term capital expenditure.

A:

Q: Explain with examples if you can what's meant by this theory briefly Capital Structure Theory

A: Capital structure theory is an important theory in financial management of a business organization.

Q: When do the funds earn interest at the MARR?

A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…

Q: Illustrate some of the Explain with example Financing Activities?

A: Cash Flow statement in general helps understand the reasons for change in cash position of the…

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: What are the major reasons to request a capital project?

A: Expansion and Growth: Companies often undertake capital projects to facilitate expansion and growth…

Q: What is a donated capital and how it is accounted?

A: Donated capital is defined as assets given as gift to the entity.

Q: What are the reasons for using the private rate of return as thethe opportunity cost of capital for…

A: Opportunity cost of capital is the rate which an investor foregoes due to the investment in other…

Q: briefly the concept of the capital components of the capital adequacy framework and provide an…

A: The capital adequacy ratio (CAR) is a ratio used to know the relationship between the bank's…

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: Define Interest Capitalization.

A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…

Q: Differentiate between the Loan and Project Cash Flows?

A: Loan Cash Flows:   It refers to the borrowing of unsecured nature that is used by small businesses…

Q: Explain economic impact of the capital market?

A: Capital markets are very important for the growth and development of any country and are important…

Q: allocated to a capital

A: Company Allot share after Receiving Application If Application is oversubscribed then Company can…

Q: What are the common internal controls in place for capital expenditure cycle? with explanations

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: Derivation of capital asset pricing model

A: The Capital Asset Pricing Model (CAPM) relates the returns on individual assets or entire portfolios…

Q: Explain the method of direct capitalization method?

A: The three approaches to value a business or an investment are the Income based,  Market based and…

Q: Define Capital Market Line (CML)

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: Why should the capital expenditures be capitalized?

A: Capital Expenditures:   Capital expenditures are those which provide future economic benefits by…

Q: t are the long-term sources of finance? Give various sources from which the long-term funds can be…

A: Step 1 The financial market, specialized financial institutions, banks, non-bank financial…

Q: Define Capital Asset Pricing Model (CAPM)

A: The CAPM or capital asset pricing model is considered to be a popular concept in finance. The main…

Q: What is capital assets?

A: Capital asset means property of any kind like land, machinery, building, computer, vehicles,…

Q: Explain the blended capitalization rate and where it can be applied?

A: The rate which is a combination of the previous rate and the new rate charged on a loan is called a…

Q: Explain with example Investing Activities?

A: Statement of cash flows:   This statement reports all the cash transactions which are responsible…

Q: What is meant by the incremental cost of borrowing additional funds?

A: Incremental cost as the name indicates is the additional cost which a borrower will incur if the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.