How do you calcuate the four methods of capital investments and how do we use the results of the calculations for making the capital investment decision

Q: Differentiate between Reserve capital and Capital Reserve on the basis of time when it can be used.

A: Capital:   It refers to the funds raised to support the business. It is the difference between the…

Q: With illustrations, show how you would interpret Financial statements to the different stake holders…

A: Financial Statements: Income Statement Revenue: $2,000,000 Expenses: $1,500,000 Net Income: $500,000…

Q: how the capital structure, cost of capital, and dividend decisions are related?

A: A dividend is a distribution of a portion of a corporation's earnings to a class of shareholders…

Q: how do i calculate total paid in capital

A: Paid in capital is the total amount which is received by the company from issuing shares to the…

Q: which of the anwsers are operating activities, financing activities, and investing activites for the…

A: In the cash flow statement there are main three segment are there.  The details are given below…

Q: How changes in capital structure effect WACC?

A: The two types of borrowing available in capital markets are equity and debt. The concept of capital…

Q: What does it mean when there are claims on the economic resources

A: Economic resource refers to the factors that help in producing goods and services. The economic…

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 inputs provides the least subjective (i.e., most objective, requiring no…

A: Valuing financial investments is the process of determining the current worth or fair market value…

Q: How can you explain working capital management? Explain different policies/approaches to manage…

A: The working capital is the capital that is used in the business for successful running of day to day…

Q: Briefly describe the different sources of capital that are considered when calculating the weighted…

A: 1. Equity Capital (Common Equity):The money raised by the business via the sale of common shares to…

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: You find capital in the same side of the balance sheet as liabilites because of ______________.…

A: From the business point of view, capital is also considered as a liability towards the owner…

Q: Source and deployment of funds concerned with 1)Ratio analysis 2)Risk analysis 3)cash flow…

A: cashflow is a financial statement that is related to cash inflow and cash outflow of the company.

Q: when considering the Basic Ideas of Finance, what are the purposes and uses of assets?

A: Assets: Assets represent a resource having economic value owned by an entity, person, company, etc.…

Q: Which of the following are the THREE key areas covered by financial management decisions?…

A: The major three areas covered by financial management decisions are as follow: Investing decision…

Q: What is the Principle of Investing in Financial Assets?

A: A financial asset is a liquid asset that gets its value from an authoritative right or guarantee to…

Q: Please decsribe, explain and give examples to the following terms so I can understand well:…

A: Contributed Capital The cash and other assets that shareholders have provided a corporation in…

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: nd the use/s of Stakeholder Analysis. provide (Name, Year) or credits to where credit

A: When it involves any structure project, all of the interior folks and groups United Nations agency…

Q: allocated to a capital

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

Q: Briefly explain the following; (i) Time value of money (ii)        Investment decision (iii)…

A: Finance is considered as the life blood of an organisation. It is necessary to manage finance in…

Q: What are the Required disclosures about each major class of capital assets?

A: Capital asset refers to the assets with a longer useful life i.e. more than a year and is not…

Q: following heads in the accounti

A: Accounting principle follows the double entry system of recording transactions. To reconcile the…

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: Briefly discuss why you might choose each of the following analysis techniques when considering an…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: What is the difference between authorized capital, issued capital and additional paid in capital?

A: The assets and cash of a firm are referred to as capital. Capital might be cash, machinery,…

Q: Knowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice…

A: Working Capital is the operating liquidity of the company which is available to business or entity.…

Q: where i have to put in the balance sheet the account "Development expenditure (capitalised)"?

A: When an expense is of the nature, that it is bound to benefit for more than one accounting period,…

Q: Which of the following formulas will correctly calculate Net Working​ Capital?   A. Current…

A: The objective of the question is to identify the correct formula for calculating Net Working Capital…

Q: EXPLAIN CAPITAL STRUCTURE WITH EMPHASIS ON COST OF EACH OF THE CAPITAL STRUCTURE COMPONENTS

A: A company's capital structure is the combination of many sources of financing it uses to finance its…

Q: Define how to record capital expenditure.

A: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and improving the…

Q: The profitability index is another method to evaluate capital investments. If you are trying to…

A: A profitability index is a quantitative tool that can help decide whether to accept or reject an…

Q: WHAT ARE THE DIFFERENT TYPES OF INVESTMENTS AND EXPLAIN EACH TYPE. GIVE EXAMPLES.

A: Different types of investment  1. STOCKS: Investment in companies listed in stock market by…

Q: how to decide and choose between investments if capital is rationed? Assess the timing effect of…

A: Here asked for multi question we will solve for first question for you.  If you need additional…

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: mpany's working capital come from which of the following financial statements? Select one:

A: The right answer is option b. Balance sheet

Q: Describe your understanding of the term "Financial Capital." When it comes to capital, what is the…

A: HERE IS THE ANSWER: