what is best option to invest small money? what are the points to keep in mind to invest in the best company for its stocks?

Q: What is the connection between Business Valuation and Financing Options ?

A: Business valuation:  The economic worth of a firm or business unit is determined via business…

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: Investments a company chooses today to determine its future success? True or false? Explain how?

A: The given statement is true. Investment is the procedure to allocate monetary resources in the…

Q: How do banks assess the risk appetite of each customer in terms of choosing the right investment?

A: Risk appetite is the ability to absorb or undertake a level of investment risk by the investor. This…

Q: t is Institutional Investors? Briefly Explain.

A: There are many types of investors in the market and institutional investors are large investors.

Q: Should the goal of the firm be to maximize the price of its stock?

A: Every company has its own vision and mission statement. Having a vision paves way for achieving the…

Q: Why do come companies prefer to use discounting in their capital investment decisions?  What is a…

A: Capital Investment:-It is an investment that a company made to purchase its fixed assets or…

Q: What are the factors favoring a high-dividend policy?

A: Dividend refers to portion of net earnings of the company that is shared with common stock holders…

Q: For an investor, it better to earn dividend or capital gains?

A: capital gains are profits that occur when an investment is sold at a higher price than the original…

Q: Which of the following is not a determinant of investment? a) The efficiency of capital equipment…

A: To increase capital assets, business do investments in property, fixed assets, financial market,…

Q: Explain the Modigliani-Miller Payout Policy Irrelevance Proposition. What are the implications of…

A: Payout Policy refers to the manner of ways by which firm return out their part of the capital to…

Q: A firm is considering IPO, which is the best instrument they would use in terms of looking at…

A: An Initial Public Offering (IPO) is the process in which a privately-owned company offers its shares…

Q: What is the role of investment banks and how can they help companies raise capital?

A: Solution-   Investment banks are a bridge between investors and also the massive enterprises. The…

Q: What are some advantages and disadvantages of top-down versus bottom-up investing styles?

A: Top-down investing and bottom up investing procedures are the procedures used in different type of…

Q: What do investors needs to consider before investing their money?

A: Intending to invest is great, but it loses its meaning if the goal, investment tenure, and financial…

Q: Companies sell common stock to raise long-term capital. What are the pros and cons of selling stock?…

A: Common Stock : Common stock is a type of security that represents ownership of equity in a company.…

Q: What is your understanding on private equity, is it financial institution? Explain. If you are a…

A: Private equity is a type of alternative investment that involves money that isn't traded on a public…

Q: In what circumstances would you choose to use a dividend discount model rather than a free cash flow…

A: dividend discount models are used in companies to value the stock of rapidly growing companies but…

Q: How do financial intermediaries help small investors access the market?

A: Financial Intermediaries: When two parties in a financial transaction engage in business with each…

Q: dividend reinvestment plan

A: Benefits to Investors- *Investors accumulate more shares without paying any commission or brokerages…

Q: According to the clientele effect, which (potential) investors might be attracted by high dividend…

A: The clientele effect explains the movement in the price of the stock of a company. The price moves…

Q: What is the role of accounting in an efficient market?    Is it worth investing the time and money…

A: The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset…

Q: how do banks improve their net profit margin to increase Return on Equity?

A: Return on Equity (ROE) measures the company’s net income to the value of its total shareholders’…

Q: Why investors are willing to invest in high-tech firms instead of conventional financial sources?

A: Conventional financing is a scheme related to financing of home that is offered by financial…

Q: What rate do investors use to discount the capital gains and cash flows of firms?

A: Discounted cash flow estimates the present value of an asset by using projected cash flows.…

Q: market capitalization is higher, lower, equal to total shareholders' equity

A: Market capitalization is computed by multiplying the current market price of the shares with the…

Q: How is treasury stock purchased? What ethical issues may arise from buying back company stock?

A: Treasury stock can be defined as the portion of equity which is not available for public to trade,…

Q: What is the best way to participate in the financial markets

A: In the financial market, the term refers to the market where buyers and sellers meet to transact to…

Q: it better to finance a company thru debt or thru equity? Why? What are the downside and upside to…

A: A business can raise funds predominantly either by  Issuing Equity, or Borrowings Loans, Issuing…

Q: What are the payout methods? Select all that apply.   Group of answer choices a. Bank loan b. Buyout…

A: Companies often pay out a percentage of their profits to shareholders as dividends, which can take…

Q: How does the percentage of ownership a company has in an investment effect them? Would the…

A: Investment in Associates and Joint venture and Subsidiary   Equity Accounting method - This method…

Q: The stockholders’ claim in a levered firm can beviewed as a call option; stockholders have the…

A: Stockholder: An individual or group holding the equity stock of the company is called the…

Q: What is behavioral finance? What are the implications of behavioral finance formarket efficiency?

A: Behavioral finance is the study of the psychological influences of an investor that affects the…

Q: Investments a company chooses today to determine its future success.Treue or false?

A: The company’s future success is based on many factors like the return a company can expect from its…

Q: Suppose a firm invest in proects that are much riskier than its average investments. Do you think…

A: A firm funds its investments either with shareholders' equity or debt. One of the major criteria…

Q: What is meant by “going private”? What are someadvantages and disadvantages? What role doprivate…

A: Going private means when a particular group or a firm of private equity acquires the stake in the…

Q: Which of the following is NOT a principle of finance? Select one: O a. company advantage O b.…

A: Finance can be referred to as the study of the allocation of assets and liabilities as per the risk…