What is the major advantage of using a fee-only financialplanner?

Q: What are the factors on which the cost of a loan depends?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: How do you calculate simple interest and commission?

A: Interest and commission is a special type of income generated on the principal amount or net…

Q: what is the best provisioning methodology in loan impairement and why?

A: Impairment refers to a reduction in an asset's value. It's similar to depreciation but it's applied…

Q: What is the difference between a credit sale (with a higher price as compared to the cash sale) and…

A: The amount of Sales made in credit has to be collected after certain period of time. In case of cash…

Q: state the limitations of the payback pe

A: Answer : The payback period is the quantity of time needed for cash inflows generated by a project…

Q: Why do payers nevertheless persist in using shared savings components of alternative payment models?

A: Alternative payment methods are defined as the payment method for goods or services that are not…

Q: What are the disadvantages of cutting expenses/costs and utilising trade credit insurance, when it…

A: Answer: Trade Credit Insurance is the methods that is applied by the company to protect its debts…

Q: What is the principal objection to the payback method?

A: The Payback period is one of the traditional or non-discounting techniques of Capital budgeting. It…

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: What does non recource financing mean

A: Nonrecourse financing It is considered as a branch related to commercial lending. Commercial lending…

Q: What is the discounted-payback method?

A: Payback period states the number of years that is taken by the project to recover the investment of…

Q: What is Unsecured financing?

A: Whenever a person requires financial assistance, they may contact a financial institution and seek…

Q: Explain and critically evaluate advantages and disadvantages of fiat money.

A: US dollar, Australian dollar, New Zealand dollar,..... are all fiat currencies , meaning that the…

Q: What is credit enhancement, and what effect does it have on debt costs?

A: Credit enhancement represents the strategy that improves the business' credit risk profile. It helps…

Q: What is passive income? Explain and give examples.

A: Passive Income  An income from a source which is somewhat diverse than  a contractor or an employer…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: What is meant by the term payback period? How is the payback period determined? How can the payback…

A: Meaning: The payback period is the time required to earn back the amount invested in a particular…

Q: Suppose your firm raises funds from outside lenders. What type of agency costs might occur? How…

A: Agency cost is the internal cost that arises internally within the firm. It can happen due to peer…

Q: Why are people willing to pay financial intermediaries their transaction costs, at our expense?

A: The question is based on the concept of function and operation of intermediaries in financial…

Q: What is securitization? What are its advantages to borrowers?What are its advantages to lenders?

A: Securitization is a financial process that takes an asset of some kind and turns it into a security,…

Q: What will be the Effect of the After-Tax Interest Cost on Loan Decisions?

A: Interest cost for loan borrowers depends mainly upon the rate of interest charged by lenders.…

Q: Explain Loan Closing Costs and Effective Borrowing Costs?

A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…

Q: What is the fundamental argument behind using an opportunity cost as a discount factor in computing…

A: Opportunity cost: This term is very general and can be used on any normal day to day situation. For…

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

Q: What are the advantages and disadvantages of using credit?

A: Credit is defined as the financial agreement where the borrowers receive something valuable and in…

Q: What is the decision rule for payback?

A: Payback period is the period of time taken by the project to recover the investment in such project…

Q: How should managers consider income tax issues when choosing a transfer-pricing method?

A:

Q: What is failure of competition?

A: The question is based on the concept of economic failure of market due to imperfect situation

Q: What is the conventional-payback method?

A: Conventional Payback Method

Q: What are some criticisms of the payback method?

A: Payback Period: Payback period is the period in which the project recovers its initial cost of the…

Q: Why would a lender be willing to make a participation loan?

A: Introduction: Participation loan is a form of loan in which lender is participating in net operating…

Q: Why Pay back period method is not as effective as NPV?

A: Payback method  It doesn't consider account inflation as well as the cost of capital. It ignores…

Q: What are the pros and cons of loaning?

A: Loaning is a process of lending money. An interest rate is charged by the lenders on the money lent…

Q: What should businesses consider when it comes to the expense side of the BPM equation?

A: Business process management is a technique which is used to plan, analyze, improve, and automate…

Q: What is the cost of accrued liabilities? If accruals have such a low cost, why don’tfirms use them…

A: An accrued liability refers to an expense a business has incurred during a specific period but has…

Q: Explain the Market Value of a Loan?

A: The market price of Debt refers to the value investors would be willing to shop for a company’s debt…

Q: How can charges be utilized to accomplish the monetary objectives of full work, value strength, and…

A: Monetary policy is referred to an actions, which used to be undertaken by the central bank of the…