Explain why repurchase agreement and Sercurities are used as lending practice in capital market

Q: Explain the following as it relates to Working Capital Management. i)          Factoring…

A: Factoring is the process of selling the company account receivables at discount to a third party…

Q: What role do interest rates play in allocating capital to different potential borrowers?

A: Rate of interest : It is the amount paid by a borrower to use the capital borrowed from the…

Q: How does the cost of equity based on internal funds differ from the cost of equity based on external…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: What are some factors that affect capital structure decisions made by management? What are the…

A: Cost of capital is lowest with 100% debt in capital structure.

Q: What approach banks may take to determine adequate capital?

A: For a bank it is highly important to ensure capital adequacy. Capital adequacy leads to stability of…

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: Explain what is capital or capital financing? Examples

A: capital financing is the form of business finance that is raised through equity funds and lenders…

Q: Explain the Principle of Investing in Financial Assets?

A: Securities are the financial assets that are traded in the financial or secondary or securities…

Q: Contrast investor's use of capital markets with their use of money markets

A: Capital market is basically the one where long term securities are brought and sold. Stock Market ,…

Q: How do the attitudes of lenders and rating agencies affect capital structure?

A: Capital structure of a company plays an important role in its decision making & it is based on…

Q: are and contrast the roles and functions of capital markets and

A: There are two types of market for raising money and trading of securities in the market capital…

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

Q: What part of a firm's balance sheet can be used as collateral?

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: acroprudential measures overlap?

A: Assessing their effectiveness is complicated by selection bias; countries which change their…

Q: Define the term Paid-in capital?

A: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the stockholders on the…

Q: What is Qualitative Asset transformation (QAT) and how does it facilitate financial intermediation…

A: QAT is an important concept related to banks and financial institutions. QAT, as the name indicates,…

Q: What is the meaning of FINANCING in the financial market?

A: Financial market is a marketplace where trading of securities takes place. Securities include bonds,…

Q: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: Is Collateralized debt obligation a good investment? Please explain in details.

A: A collateralized debt obligation also known as a CDO is a complex structured credit product which is…

Q: Following the agency theory of capital structure, discuss how debt financing can be used as a…

A: The agency cost of debt is the conflict of interest that exists between a company's shareholders and…

Q: Explain equity participation loans?

A: Equity participation loans refer to the situation where the owner or lender will reduce the interest…

Q: how do banks improve asset utilisation to increase Return on Equity and what are the risk…

A: Banks are the financial institutions which deposit money from customers at lower interest rates and…

Q: How is Borrowing capitalized

A: Ans. Borrowing costs are interest and other expenses or costs that an entity incurs in connection…

Q: Distinguish between: Money market and capital market?

A: MONEY MARKET- The money market refers to commercialism in very short debt investments. At the…

Q: What are the strategies of deferring capital gains, an exchange may be used in conjunction with…

A: The 1031 Exchange permits Associate in Nursing capitalist to sell assets or property and…