What is agency relationship and how it gives  rise to agency cost of equity?

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: What are the difference between intrapreneurship and entrepreneurship

A: Entrepreneurship means the willingness of an individual to start a business and undertake the risk.…

Q: What three approaches are used to estimate the cost of common equity? Whichapproach is most commonly…

A: Capital Asset Pricing Model Bond-Yield-plus-Risk-Premium Approach Dividend-Yield-plus-Growth-Rate,…

Q: what is financial leverage and its implications for company performance?

A: Company borrow amounts to buy assets and do business.

Q: how signaling content affects dividend policy definition

A: According to signalling theory any positive signal indicates positive indicators and will increase…

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: what do stockholder-grantor and secured creditor means?

A: Introduction: In a corporation ownership is represented by the shares held. Owners of a corporation…

Q: a) Discuss the measures stakeholders undertake to minimize the costs of equity

A: The cost of equity is the rate of return that a corporate entity requires to determine whether or…

Q: What is meant by Owners’ equity?

A: The balance sheet is the financial statement of the business which represents the financial position…

Q: What amount should be reported as total shareholders' equity ad?

A: Total Shareholder's equity refers to the net worth of the company.Which is the amount that would be…

Q: What is agency promblem in financial terms?

A: Agency problem is the conflict arises in the interest inherent in any relationship, in which one…

Q: Share option compensation is what accounting subject?

A: Stock-based compensation: It is a way of paying employees, executives, and directors of a company…

Q: What is the related standard for Shareholders Equity?

A: The philippine financial reporting standards: These are the accounting standards and practices used…

Q: What is a working capital, and how does it differ from other types of capital? What role does it…

A: Business process are the sequential steps followed by the stakeholders to reach a certain goal. Each…

Q: , How is the ability-to-pay principle (c) different from the benefit principle? Briefly discuss the…

A: Introduction:-  Ability to pay—A tax fairness idea that asserts that persons with various levels of…

Q: What are the relationships between Enterprise / Equity Values and the DCF Approach

A: DCF approach: It is the model in which the net present value of all the cash to be received in the…

Q: explain how the idea of value creation under stakeholder theory differs from that under positive…

A: Here discuss about the details of the difference between the stakeholders theory with the positive…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

Q: Briefly explain the over-investment problem from the perspective of the agency costs between…

A: Firms with both the debt and equity in the capital structure often face agency conflicts between…

Q: Define cost of equity

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: What mechanisms operate the chain of building relationship equity?

A: The B2C mechanism is the credible chain for building the relationships equity because it is…

Q: what is eturn on common shareholders' equity role in analysis?

A: Return on common shareholders’ equity: It refers to the return that company investors of common…

Q: Why this Strategic, Tactical and Operational decision classification more relevant than classic…

A: We know that a manager has to take various decision in achieving the goal set the by management.…

Q: Which one of the following is an internal characteristic that can affect the value of an investmen…

A: Internal Characteristics mean factors within the organization. It excludes political events,…

Q: How are the earnings per share beneficial for the stakeholders?

A: Earnings per Share (or) EPS are the earnings of the company. And the stakeholders for whom these…

Q: Contrast term stockholder and stakeholders ?

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Why is continuity assumption,separate entity assumption and cost principle so important for…

A: Continuity means the assumption and principles will be continued to be followed every year so that…

Q: Explain in detail why company valuation is influenced by capital structure decisions.

A: Capital structure of a company shows how has the company raised its capital. A company's capital…

Q: Which of the following elements represents an economic resource? C . Owners’ equity

A: Economic resources refer to effective use of resources in order to achieve maximum output with…

Q: What is the difference between the two basic sources of shareholders’ equity?

A: Shareholder's equity is the capital contributed by shareholders in the company and accumulated…

Q: What indicates an investor’s ability to significantly influence the decision-making process of an…

A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…

Q: what is return on common shareholders' equity?

A: There are various ratios which measure the profitability of a firm like return on equity, return on…

Q: Define signaling theory (capital structure)

A: Capital structure: Capital structure is defined as mixture or proportion of all kinds of capital…

Q: explain the various approaches to organizational dividend policies

A: Introduction:- A dividend is the share of profits that is distributed to shareholders of the…

Q: Define the clientele effect, and explain how it affects dividendpolicy

A: Dividend policy is defined as a guiding principle in determining what portion of earnings be paid…

Q: How does shareholder value relate to capital structure?

A: The combination of various types of external funds, known as capital, used to finance a corporation…

Q: What is meant by capital structure, what are the characteristics of it's main components, and how…

A: Meaning of Capital Structure: - It is the most important factor of a company. A company can not run…

Q: How do “windows of opportunity” impact a firm’s capital structure?

A: Windows of opportunity : In simple words, windows of opportunity, in this context, relates to the…

Q: How does accounting help the capital allocation process?

A: Capital allocation: A capital allocation is the process of allocating total capital amount into…