. Distinguish between “the enduring benefit asset test” and the “fixed and circulating capital test” when testing for items which are “capital in nature”. Eplain and elaborate the answer with relevant examples. Thank you.

Q: Define risk-adjusted cost of capital (r)

A: Risk adjusted cost of capital is the measure of returns of a project relative to the risks of a…

Q: What text and supplemental information, is there a best choice for using any one specific method of…

A: Investment Valuation: Investment valuation refers to the techniques and procedures employed in…

Q: Which of the following factor(s) is/are considered by courts in determining whether an act committed…

A: A partnership firm is a constitution entity that engages two or more individuals as partners. These…

Q: Explain with examples if you can what's meant by this theory briefly Capital Structure Theory

A: Capital structure theory is an important theory in financial management of a business organization.

Q: Apply the procedure to find the true IRR, or return on invested capital, of the mixed investment?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: 1. Jensen’s alpha 2. Information ratio Discuss how to selecet the appropriate measures are for…

A: Jensen's alpha and information ratio are important measures used while taking investment decisions.…

Q: Would you rather invest in: (compare and contrast) 1. Other Investment Assets 2. Alternatives to…

A: Investment refers to the process of investing funds in capital assets, financial securities, digital…

Q: Differentiate between agency theory and pecking order hypothesis of capital structure. In each case,…

A: Agency theory:-This theory main aim is to resolve disputes over pritorizing different sources of…

Q: ite one example of the “pros-cons” on the use of Asset-Based Valuation and briefly explain

A: Asset-based valuation seems to be a type of business valuation primarily emphasizes on the worth of…

Q: Q4. Define and differentiate between market value, investment value and transaction prices. In…

A: valuation is an essential tool for making informed decisions about assets and ensuring that…

Q: In your own view, how important is asset allocation? Discuss the various strategies of asset…

A: Since each asset class comes with a different degree of risk, it becomes important to balance the…

Q: What are some possible financial decisions in which using the Present Value (PV) formula might be…

A: The present value (PV) is the current value provided a defined rate of return of a future amount of…

Q: a. In your own words, describe two of the ways in which REITS can increase their income

A: REITs are a kind of publicly traded real estate securities. They are tax-advantaged trusts and are…

Q: Which of the following terms accurately describe what a resource is worth in its next- best use. a.…

A: In this question the factor which describes the best worth of resources is asked. We will analyse…

Q: True or false. to apply the rate of return analysis correctly, we need to classify an investment i…

A: In the given question we need to answer whether the given statement is True or False.

Q: Show by using equations or a diagram, that an expected utility maximizer requires a higher return…

A: The objective of the question is to demonstrate that an investor who maximizes expected utility, a…

Q: Please decsribe, explain and give examples to the following terms so I can understand well:…

A: Contributed Capital The cash and other assets that shareholders have provided a corporation in…

Q: lain the relationship between return on equity (ROE), return on asset (ROA), and leverage effect.…

A: Return on equity and return on assets shows how much is the profit earned by the company and are…

Q: What is a capitalization rate? What are the different ways of arriving at this rate for an…

A: Capitalization rate: Capitalization rate is the projected rate of return percentage that a property…

Q: (a) What is a Capital Recovery Amount Factor?​​

A: Step 1 The ratio of a constant annuity to the present value of receiving that annuity for a certain…

Q: In the case of the net present value technique, explain how the cost of capital is used as a…

A: The question tells about the net present value technique and  how the cost of capital is used as a…

Q: Discuss your understanding in valuation.

A: Valuation is the process that is used by the company in order to determine the fair value of an…

Q: Discuss the main assumptions of the Capital Asset Pricing Model (CAPM).

A: The Capital Asset Pricing Model (CAPM) is a widely used financial model that calculates the expected…

Q: Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable…

A: Option C is correct.

Q: What does HPR stand for? O a. Holding Period Return O b. House Price Return O C. Holding Power…

A: Abbreviation is a shorter form of words or phrase. The shorter form of word is used instead of whole…

Q: Explain what quantitative easing is. Include in your discussion an explanation of its intended…

A: A central bank is a financial institution that privilegedly controls the production and distribution…

Q: What is Working capital efficiency and provide an example of it.

A: We have to comment on working capital efficiency and provide some example.

Q: What is the difference between-1 accounting and Finance? answer this ?question with suitable example…

A: The difference between accounting and finance is as follows:

Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…

A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…

Q: Capital Asset Pricing Model

A: The Capital Asset Pricing Model Is also known as CAPM. CAPM shows the relationship between…

Q: State TWO (2) factors that differentiate between the Rate of Return and Cost of Capital.

A: The rate of return and cost of capital are key considerations in financing and investing. These…

Q: Define Realizable (settlement) value

A: Realizable settlement value in case of liabilities is considered to be equal to the settlement…

Q: what if iternal rate of return is equal cost of capital ?what is decision

A: IRR or internal rate of return is the % return that the project generates.  IRR is the rate at which…

Q: Explain what capital structure theory attempts to do and demonstrate useful lessons that can be…

A: Capital structure theory refers to a formulated and well-organized structure that reflects the…

Q: What are some possible financial decisions in which using the Future Value (FV) formula might be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: Define the following terms, using graphs or equations to illustrate youranswers wherever feasible:…

A: c) The model indicating the relation of the market risk and the required stock returns is known as…

Q: A net present worth equation is used to solve for a ROR by setting the net present worth equation…

A: ROR or rate of return of project also known as internal rate of return of project is the interest…

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: Under IFRS, how are investment properties subsequently measured? a) The cost…

A: International Accounting Standard 40 on Investment states that the investment property should be…

Q: ith the use of an example, briefly explain the main difference between the ex-ante and the ex-post…

A: Main Difference between ex-ante and the ex-post opportunity cost of capital: Ex-post risk is…

Q: Define the term Equivalent worth-calculation?

A: To define the term Equivalence worth calculation.

Q: State three conditions when analyst prefer to use either FCFF or FCFE as a measure of value

A: Free cash flow to the firm (FCFF) is the available cash flow for the firm's suppliers once the firm…

Q: Explain the blended capitalization rate and where it can be applied?

A: The rate which is a combination of the previous rate and the new rate charged on a loan is called a…