Answered: 1) Describe the various sources of…

Business

Accounting

1) Describe the various sources of finance a company can use in meeting their long-term and short-term financial needs?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following statements is correct? Select one: OA. Working capital is the initial capital…

Q: Every business needs money to fulfill its financial requirements and also for growth. Business…

A: The term finance includes the creation and study of money, investments, and also management. It…

Q: Computation of cost of capital is significant part of the financial management to decide the capital…

A: The cost of capital is the minimum rate of return that a company must earn on its investments to…

Q: What are the sources of capital that can generally be used to start and grow a business? Critically…

A: A company's capital is the money it has available to pay for day-to-day operations and to support…

Q: how would you comment on a company that has positive cash flows and plans an expansion project…

A: Positive cash flows means that the company is generating more cash than it is spending, which is a…

Q: As a financial manager how do you make decisions that can help raise capital for the firm?

A: The role of the finance manager in any organization is very crucial he is entrusted to raise finance…

Q: what comment can be made on this or what can be added to it? The weighted average cost of capital…

A: WACC is a very important financial metric that is used in the world of finance.

Q: onsidering short term financing for working capital requirement. What are three key factors that…

A: Short-term financing: Short-term financing deals with raising of cash needed for a shorter periods…

Q: An effective process of capital allocation promotes productivity and provides an efficient market…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: how to improve the working capital flow of the company.

A: The investment in current assets is known as working capital. When we subtract current liabilities…

Q: Which of the following questions should be considered when developing a corporation’s financial…

A: When creating a corporation's financial plan, each of the questions on the list is crucial to take…

Q: Computation of cost of capital is significant part of the financial management to decide the capital…

A: The cost of capital is the minimum rate of return that a company must earn on its investments to…

Q: a finance manager of a company, explain the factors that you should consider when undertaking the…

A: Capital structure is very important for the company and capital structure decides the cost of…

Q: Profit maximization is the main goal of a business organization. The net accounting profit is the…

A: True and False are given as under-

Q: Indicate whether the following statement is true or false. Provide the relevant explanations. The…

A: The cost of capital is the rate of return that investors require to invest in a company's…

Q: According to the M&M propositions WITH and WITHOUT taxes, should a financial manager spend time…

A: We have to suggest an appropriate course of action for a manager related to his/her pursuit for an…

Q: You have been asked to determine the short term financing needs of your firm. Explain how you would…

A: Short-term financing needs refer to the requirement for funds to cover a company's short-term…

Q: investment

A: solution. how to acquire and employ or invest funds

Q: Contrast and compare sources of business finance and assess various determinants of the cost of…

A: There are different financing options available to the firm. It includes, preference shares, debt,…

Q: Below you have the three types of financial management decisions. Match each type of decision to a…

A: 1. Capital budgeting: Deciding whether to expand a particular plant. 2. Capital structure: deciding…

Q: olvency is a fir

A: Solvency : In simple words, Solvency refers to a corporation's capacity to pay down long-term…

Q: 1. Mr. Salim, a Finance Manager, is concentrating on how the finance for his company can be…

A: Cash mobilization represents a technique used in order to assemble the fund and the funds would be…

Q: A business is considered to be financially efficient: 1.If they have more current assets than…

A: Ratio analysis is a technique used by the users of the financial statement to know about the…

Q: how

A: M and M has given the theory of valuation of firm with no taxes and with taxes

Q: Analyze the importance and scope of financial management in wealth maximization of an organization…

A: Financial management (FM) means managing the funds. It basically deals with two things: How to…

Q: Financial Statement Analysis tells you if your company is on the right track. Are you growing,…

A: Financial statement analysis - is the analysis of the financial statements of the organization to…

Q: What can be added to this or what comment can made? The weighted average cost of capital (WACC)…

A: The paragraph is about WACC and my comments can be seen below:

Q: Maximizing owners' equity value means carefully considering all of the following EXCEPT Multiple…

A: Maximizing owners' equity value involves carefully considering how to bring in additional funds,…

Q: What are the different types of capital requirements that should be considered while estimating the…

A: Capital means the cash or assets which are used to be run or setup the new business and pay their…

Q: 4. What are two trends in the company’s operations or capital resources that management considers…

A: First is the inventory risk associated due to a change in customer demand, changes in pricing and…

Q: scribe the best capital mix of a company

A: Capital mix of a company include debt and equity in its capital structure. Equity and debt both…

Q: If a company has a positive operating cash flow, a positive cash flow to creditors, a positive cash…

A: Financing refers to the act of obtaining funds or capital to finance business operations or…

Q: Valuing an enterprise is one of the first steps to building an informed financial model. Articulate…

A: Financial modeling can be defined as the financial representation of an organization's upcoming…

Q: Which of the following best describes a company's operating activities? Operating activities are…

A: Lets understand the basics.Operating activity is determine as an activity related to purchase or…

Q: It is important for entrepreneurs to understand how to maximize their financial resources in the…

A: Introduction In the business world, the word "entrepreneur" refers to someone who has an idea for a…

Q: 1. Explain the concept of finance. 2. How is finance related to other functional areas in a business…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: addresses the question of where money is raised to finance business activities. O Capital budgeting…

A: The objective of the question is to identify the correct method through which businesses raise money…

Q: What unique problems do not-for-profit businesses encounter in financial analysis and planning? What…

A: Financial analysis: Financial analysis is a common method used by financial managers to access the…

Q: Discuss how financial markets could help to finance the growth of the business. Discuss with…

A: In general, financial markets apply to any marketplace where financial instruments trading happens,…

Question

1) Describe the various sources of finance a company can use in meeting their long-term and short-term financial needs?
2) A balanced capital structure is important for the overall health of the company. explain how an ideal capital structure should help the company for the success of its business?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What are the short term and long term financing available for companies to generate funds for operating their business. Discuss the reason for acquiring this funds.
answer these question
Capital is the major part of all kinds of business activities, which are decided by the size, and nature of the business concern. Capital may be raised with the help of various sources. If the company maintains proper and adequate level of capital, it will earn high profit and they can provide more dividends to its shareholders. required : a) Define capital structure. b) Discuss the various factors affecting the capital structure.
How an investment help to an business to grow
Finance multiple choice question. 9. Which of the following is the primary goal of financial management for all for-profit companies? Maximize value of owners' equity. Maximize net cash flows. Maximize profitability. Minimize risk. Maximize market share.
Explain the financial statements that are critical for understanding the company’s ability to earn profits and generate cash in the future.
What is meant by Capital Structure of a company? In this context, describe the varioussources of funding available to companies.
B. Discuss the potential sources of long-term finance available to a large company.
Explain what is meant by the 'capital structure' of a company. Using the different theories of capital structure discuss why it is important that businesses carefully consider their capital structure.