Q: creditor mostly interested in а. Liquidity b. Efficiency С. Marketability d. Financial leverage
A: Creditors are the users of financial statement who analyses the company financial statement to…
Q: Which risk ratios best answer each of the following financial questions? a. How quickly is a company…
A: Risk Ratio: This ratio indicates the health of the company. Here health means that the capital…
Q: When considering the discount rate to use for discounting cash flows of an entire company, we can…
A: The discount rate is the loan cost used to decide the current worth of future incomes in a…
Q: Assuming that we are not able to accurately predict cash flows , generally decreased risk is thought…
A: Cash flow at risk at risk tells us how changes in market factors can change the future cash flows.…
Q: Why is the quick ratio considered by some to be a better measure of liquidity than the current…
A: The quick ratio examines a company's short-term liquidity position and assesses its ability to meet…
Q: In which way CDOs can create a liquidity squeeze in the financial markets
A: The financial market is a market where people trade financial securities and derivates. The…
Q: Why is a high quick ratio not always a good indication of a well-managed liquidity position?
A: Liquidity: Liquidity means how quickly you can get your hands on your cash. Liquidity is to get your…
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: Charecteristics Model approach IN FINANCE, can be used in determining the discount rate in equity…
A: The discount rate in the equity valuation describes the returns in the long term given as a…
Q: Define Liquidity Analysis?
A: Liquidity analysis is very essential as it shows the ability of the firm in paying short-term bills.…
Q: Value at Risk (VaR) is a statistical measure of maximum loss used by banks and other financial…
A: Value at Risk is a technique used by institutions to analyze the potential risk assessed in the…
Q: Which of the following statements is false? A. Banks have high levels of liquidity assets and…
A: Duration of bond measures the sensitivity of prices of bonds with change in interest rate in the…
Q: Which of the following provides the best description of the liquidity ratios? Current ratio is the…
A: Solution:- Liquidity ratio measures the liquidity of a firm, i.e. how efficiently a firm is able to…
Q: Explain Minsky’s Financial Instability Hypothesis and mention the assumptions of the model.
A: The financial instability model hypothesis is a financial and economical model that has been…
Q: Some banks use regression methods to estimate liquidity need Select one: True False
A: There are various methods used to estimate liquidity
Q: Liquidity dry up could cause a financial institutions to become balance sheet insolvent. Briefly…
A: Liquidity dry up occurs when financial institutions have a shortage of accounting, funding, and…
Q: Finance is a science that studies the management of funds and the relationship of time, money and…
A: Finance can simply be referred to as the management of money and investment in an individual's…
Q: The main ratio used by many financial analysts to examine a company's short-term liquidity risk is…
A: One of the important functions of a financial manager is to continue monitoring and evaluating the…
Q: An increase in the riskiness of financial securities results in a_______ in the supply of loanable…
A: The riskiness of financial securities or financial risk is defined as the threat of losing the money…
Q: True or False Sales projections and the ability to accurately predict the future have a large…
A: The sales projections and ability to accurately predict the future helps management to estimate the…
Q: If the liquidity preference hypothesis is true, what shape should the term structure curve have in a…
A: The hypothesis of liquidity preference defines that the savers of short period rule the market by…
Q: do you understand by the term "Liquidity Management". Why is important ?
A: in organisation company have large amount money held in different forms assets but it takes time to…
Q: he firm has adequate cash to pay bills
A: The stakeholders of the entity evaluate the financials of the company in many possible ways.…
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: When a bank holds a lower level of capital, a given dollar level of profits represents a lower…
A: False
Q: Assume two banks are equal to each other in size in terms of total assets. The bank which has more…
A: Explanation: Yes, the bank that would have higher liquidity will have a lower return on equity. The…
Q: If a bank has a negative gap, it is likely that it has a: a. positive duration gap. b. negative…
A: interest rate gap give the risk of interest on assets and laibilties Negative gap indicates that…
Q: Based on the theoretical DuPont model, explain three (3) strategies that banks can adopt to increase…
A: Dupont analysis is an evaluation method that determines the three components of return on equity…
Q: What does liquidity measure? Explain the trade-Off a firm faces between high-liquidity and…
A: Liquidity means availability of cash and cash equivalents (for example commercial paper, Treasury…
Q: An example of asymmetr information in financial markets is that
A: Introduction: The term asymmetric information can be defined as a situation when the knowledge is…
Q: What is liquidity black holes?
A: Liquidity is when assets can be easily traded in the market with no compromise in the price of the…
Q: Critically discuss the application of EWMA, GARCH and asymmetric GARCH models to volatility…
A: Volatility should be forecastable using a volatility model. Almost all financial applications of…
Q: The building blocks of financial statement analysis does not include: a. Market expectations.…
A: Financial statements are those statements which are prepared at the end of the period in order to…
Q: What is the stuitable strategy to do for, Operating cash does not cover debt, PE Ratio, EPS Ratio,…
A: Debt interest is a financial burden which needs to be paid even if the company does not have…
Q: The risk structure of interest rates and the term structure of interest rates are identical. True or…
A: The risk structure of interest rate refers to the differences in default risk, liquidity, and Income…
Q: One of the following statement is true about strategies of liquidity management Select one: O a.…
A: Liquidity management measures the efficiency of meeting financial requirements of the business by…
Q: What is the CAPM beta? How is it different from Cash Flow beta? Provide intuitive explanation and…
A: Beta is an important component of the CAPM- capital asset pricing model, which calculates the cost…
Q: All the statements are incorrect regarding current ratio except? a. The more predictable a firm's…
A: Solution:- Current Ratio means the ratio of current assets to current liabilities of a firm. It…
Q: In comparison to small banks, larger banks typically have A-fewer core deposits. B-All of these…
A: A bank is a sort of financial institution that takes public deposits, creates demand deposits, and…
Q: Which of the following statements is false?(a) The quickest way to determine whether a firm has too…
A: Debt to equity ratio shows whether a corporation is having too much debt or not. Hence, the option…
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- creditor mostly interested in а. Liquidity b. Efficiency С. Marketability d. Financial leverageGive typing answer with explanation and conclusion What is liquidity a measure of? Discuss the potential merits of high liquidity versus low liquidity.someone solve it step by step but not use excel and draw cash flow diagram
- The yield on a savings account is also referred to as Select one: of O A. liquidity. O B. compounding. zion O C. rate of return. O D. asset management. O E. insolvency.can someone show me the answers to put in the financial calculator to get the answer? pv=? fv=? pmt=? n=? i/y=?Explain two (2) disadvantages of discounted cashflow analysis.