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- Discuss the benefits of managing financial risks in a company?Which of the following types of financial risk can be effectively managed by holding a lot of short-term deposits on the balance sheet that are used to finance long-term assets of the business such as mortgage loans/credits to allow the business to make profits? Select one: a. Interest Rate Risk b. Liquidity Risk c. Market Risk d. Foreign Exchange RiskHow can a company expand itself out of business, and how can a finance management prevent this from happening?
- What factors contribute to the business risk of a company? What is financial risk? How do the various sources of risk affect the optimal capital structure?Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in a company’s level of gearing?how do banks improve their net profit margin to increase Return on Equity? what are the risk implications ?
- How do Fintech changes the trajectory of financial market? in terms of providing accessibility and convinience to their customer?What are the possible actions that a firm can take if it experiences a financial failure?Financial markets: efficient and other. How are financial firms able to make profits? Under what circumstances are their profits limited?
- What is the relationship between securitization and the role of financial intermediaries in the economy? What happens to financial intermediaries as securitization progresses?How is it possible for a firm to grow itself out of business and how can this be guarded against as a financial manager?Explain the principle of increasing financial risk and why it is important when assessing the financial and economic merits of a business