Explain the profitability-risk trade-off of alternative methods of financing a given working capital investment.

Q: Explain the following concepts and how they relate to one another: - Operating leverage  -…

A: Leverage is used to lifting weighty articles, which may not be generally conceivable. In the…

Q: Give two examples of fixed capital

A: Fixed capital:                 Fixed capital is defined as, it is a tangible things or stocks, owned…

Q: In a combination plan, retirement benefits are funded with a combination of a. whole life policies.…

A: d. a & cThe new Combination Plan is a combination of whole life policies and assets in a side…

Q: xplain the functioning of factoring. How does a company selling its receivables benefit?

A: A factor, or considering organization, purchases other firms' records receivable. The factor…

Q: What are the types of investors?

A: Investors have the potential to serve as the lifeblood of a startup. A right investor can help…

Q: Explain the importance of knowing the time value of money in financing decisions and other concerns.

A: Time value of a money is a concept in which it is assumed that the money has no value ,but when the…

Q: discusses two discounted cash flow techniques that are used when making capital budgeting decisions.…

A: Cash flow is the amount of cash and its equivalents that transfer in and out of the business.

Q: Identify a firm’s short- and longterm financial needs.

A: Strategic goals are of two types namely long term strategic goals and short term strategic goals.…

Q: In the capital budgeting phase, what kinds of investments and expenses are usually considered?

A: The method used by a company to assess major programmes and acquisitions consists of capital…

Q: How are Capital Costs incurred?

A: A capital cost is incurred in a business when it spends money, uses collateral, or even takes debt…

Q: With reference to the information given above, 1)  Discuss the relationship between risk and return…

A: Usually, the higher the possible return of an investment, the higher the uncertainty or risk. There…

Q: Explain the difference between equity capital and debt capital. Which category would be stocks fall…

A: Businesses need capital in order to maintain continuity with their day to day business operations. A…

Q: Illustrate the importance of working capital for a new manufacturing firm

A: Working Capital: Working capital is defined as capital which is required to run the daily operation…

Q: Define the term capital intensive?

A: Finance  Finance is an integral part of a business since no business can work without the flow of…

Q: Explain how small business use the following capital sources: Internal Funds Trade Credit Equity…

A: Small businesses are those type of organizations that has limited resources and limited scale of…

Q: what is non-current liabilities?

A: Non-current liabilities are the long-term financial obligation which is listed on the firms' balance…

Q: 19. Which of the following forms of capital provides market discipline for the firm? O a. Preferred…

A: Answer- (B) Subordinated Debentures Subordinated Debentures is  forms of capital provides market…

Q: Discuss golden Rule level of capital diagrammatically and discuss why it is desirable?

A: Which means of Golden Rule of Capital Accumulation:  The Solow model shows at any rate one thing…

Q: Explain the term Financing?

A: Finance is related to management, finance and money. It is also related to capital, investments and…

Q: Describe a method for determining the length of time required to recover the cost of an investment.…

A: Payback period is the method for determining the length of time required to recover the cost of an…

Q: What is capital for an organization and explain what are the major purposes for which  a business…

A: Capital refers to the financial resources that organizations can use to fund their operations.

Q: What are the different factors affecting the capital decision and how each factors affects the…

A: What are Capital Investment Decisions:-  Capital speculation choices include the decisions made by a…

Q: - Which of the following is the type of financing that arises as a result of adding the profit…

A: Financing is carried out to raise funds for running the business. It is usually done using the…

Q: Where can businesses get capital? Why is a company's capital mix so vital?

A: The fundamental wellsprings of financing are held profit, obligation capital, and value capital.…

Q: ow does a company maintain its capital

A: Capital maintenance, otherwise called capital recovery, is an accounting concept based on the…

Q: opportunity cost of capital for a safe investment?

A: The opportunity cost of capital refers to the funds that are invested on the internally projects…

Q: McMaskers has a negative cash to cash cycle. From this information alone, McMaskers is   a. losing…

A: The organization refers to a group of individuals involved in achieving defined goals. It can be…

Q: 2. Discuss the various sources of debt capital available to entrepreneurs.

A: A company requires both, equity and debt, to run a business. Equity refers to the money for which…

Q: Explain how factoring works. Of what benefit is factoring to a firm that sells its receivables?

A: When a company purchases debt from another company, it is known as factoring. It is of two types,…

Q: Long-term financing is generally used to open new businesses; True or False

A: Long-term financing refers to any type of debt that will be repaid in less than five years.…

Q: What are some of the common forms of capital for small businesses

A: Usually there are four types of capital that the firm uses in the business which are as follows: a.…

Q: Evaluate the disadvantages of equity financing.

A: The two most common sources of equity financing, angel investors and venture capital firms,…

Q: Explain why most investors prefer to hold a diversified portfolio of securities as opposed to…

A: Securities refers to those financial instruments that holds value and it can be trade between…

Q: How do i calculate the capital structure of a company?

A: Definition - The capital structure is named the quantity of the debt that's employed by a firm for…