Part I: Answer the question as following 1. What is capital and define the capital? 2. Explain the types of capital. 3. What is capitalization? 4. What are the kinds of capitalization? 5. Explain the effects of under capitalization. 6. Discuss the causes of over capitalization. 7. Differentiate the capital structure and financial structure.

Q: Differentiate between the money market and capital markets. Provide examples of both.

A: money market and capital markets are two important components of financial markets.

Q: 1. What is financial intermediation?

A: Comments; Multiple Questions asked   Financial intermediation It is a mechanism whereby surplus…

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: how changes in Working Capital affect Cashflow?

A: Working capital or net working capital is equals to firm’s current assets minus current liabilities,…

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: Differentiate between agency theory and pecking order hypothesis of capital structure. In each case,…

A: Agency theory:-This theory main aim is to resolve disputes over pritorizing different sources of…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: Capital account transactions are not affected by Select one: a. Investment diversification

A: Balance sheet is the representation of financial position of the company tha includes the assets,…

Q: How does the "Net Operating Working Capital"  differ  from    "Net Working Capital "? (write only…

A: Net Operating Working Capital: It is the difference between the total long period assets and total…

Q: hat does it mean by analyse profitability of invested capital

A: Introduction : In simple words, invested capital refers to the sum of all the funds that a business…

Q: 2. What is the difference between Gross Working Capital and Net Working Capital? Explain your answer…

A: Gross working capital is referred as the investment of the firm in the current assets. Current…

Q: The conceptual framework indicates that there are two concepts of capital. Clarify  the two concepts…

A: Step 1Capital can be defined as the money invested in the business to run and operate the business.…

Q: Which of the following statements is CORRECT? Profit have no effect on capital Profit will…

A: Profit means the difference between the revenue from operation and total cost . Capital means the…

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: Explain the Principle of Investing in Financial Assets?

A: Securities are the financial assets that are traded in the financial or secondary or securities…

Q: When are dividends considered a Return of Capital? Give Code Section _______________

A: The company raises funds by issuing equity. The company issues either common shares or preferred…

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 does working capital management differ from capital budgeting and capital structure?

A: Working capital management is a business strategy that ensures a company's operations run smoothly…

Q: How do we get the weighted average cost of capital if not given in the question?

A:

Q: at is the relationship between WACC and capital structur

A: In the capital budgeting decisions WACC is very important and it act as hurdle rate of return what…

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: Which of the following would not be considered a form of capital? A. Cash B. Credit Card C. Money…

A: Introduction: Capital: Owners contribution in business called as Capital.

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: following heads in the accounti

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

Q: When are dividends considered Ordinary Income? Give Code Section b)When are dividends considered…

A: The Internal Revenue Code includes several provisions that govern the taxation of dividends,…

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: How do firms finance investments in current assets?

A: A current asset is the assets that only include those assets that can be easily converted to money…

Q: 5) There are two concepts of capital in the Financial Reporting Conceptual Framework. Briefly…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Define asymmetric information theory (capital structure)

A: Capital structure plays an important role for any organization & it would be generally in the…

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: Explain what capital structure theory attempts to do and demonstrate useful lessons that can be…

A: Capital structure theory refers to a formulated and well-organized structure that reflects the…

Q: Describe the Principle of Investing in Financial Assets?

A: The financial assets are those assets which are not having a physical existence like stocks, fixed…

Q: What do you mean by Working capital? 2. What are the types of working capital?

A: Working capital is the amount of capital which is used by the business in its routine operations.

Q: how to find paid in capital

A: It is an equity account on a company's balance sheet. .It represents the amount of money received…

Q: are dividends considered Capital Gain? Give Code Section

A: Dividend represents the profit distributed among the shareholders of the company. Its is reported in…

Q: . Distinguish between “the enduring benefit asset test” and the “fixed and circulating capital test”…

A: Asset- All the resources that a business anticipates using to produce future revenue are referred to…

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: 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: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…