ging against movements in es contract. The index fut

Q: what is an available-for-sale security?

A: Securities are financial instruments that can be traded easily. The entities use these securities to…

Q: What is managed floating rate?

A: Managed floating rate: It may be a framework that requires an issuing central bank to mediate…

Q: What is meant by a dilutive security?

A: Dilutive security is a type of investment security that helps the company increase its equity…

Q: Examples of a market order, limit order and a stop loss?

A: To buy or sell Common stock or shares of a firm, you can place different types of buy/sell orders…

Q: What are the Uneven-Payment Series?

A: What are the Uneven-Payment Series.

Q: Explain the effect of issuance cost on firm value.

A: There are issues cost associated with debt and equity that has impact on  value of firm.

Q: What is the Security Market Line (SML) ?

A: Answer: A security market line (SML) is a line that representing the relationship between systematic…

Q: What is Operating Leverage and is it good or bad?

A: It can be characterized as how much a firm brings about a mix of fixed and variable expenses. In…

Q: ferent Between spot and forward ma

A: In commodity or any assets markets there are many types of markets are there depending on the basis…

Q: State the difference between secondary market and primary market.

A: Financial Markets refer to the place where financial assets or securities are being created,…

Q: Define spot markets

A: A place where numerous sellers, as well as buyers, come together for exchanging services and…

Q: Explain how the lower of cost and net realizable value rule is applied to purchase commitments.

A: Purchase Commitments: It refers to the commitments or contract made by a company with its suppliers…

Q: what is fixed-price contract, and what are the benfit of chosing it

A: A contract where the price is fixed as negotiated by the parties is known as a Fixed Price Contract.…

Q: What if the lessee is unaware of the lessor’s implicit rate?

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: What is tip of financ

A: Finance is generally described as managing money, which encompasses actions including such…

Q: Understand how variable consideration and other aspects of contracts affect the calculation and…

A: Variable consideration:  It refers to the amount of revenue that is to be recognized as per the…

Q: Explain the determinants of credit olicy variables. 2. Explain the hotives for the extension of the…

A: The important dimensions of a firm’s credit policy are credit standards, credit period, cash…

Q: What is liquidity premium (LP)?

A: Answer: Interest rate theory on liquidity premium is a significant concept in bond investment. It…

Q: How is the contract-based approach (IFRS) and the earnings approach (ASPE) used for allocating the…

A: The contract-based approach, as defined in IFRS 15 (Revenue from Contracts with Customers), is a…

Q: The fee paid to the underwriter is called the a. tactical spread. b. gross spread. c. net spread. d.…

A: Gross Spread refers to the underwriters' fees which they received for arranging out and underwriting…

Q: What is the difference between firm-commitment and stand-by underwriting? What is underwriting…

A: Underwriters play a very critical role in ensuring the fresh issue of securities of the company are…

Q: Spot market Futures market Over the counter market Forwards markets

A: Commodity market are very important for determining the prices of commodities.

Q: standard setters?

A: Earnings management for contracting causes would be an interest in standard setters because of the…

Q: Describe the difference between the forward price and the value of a forward contract?

A: First, let us define a forward contract. Forward contracts are agreements between two parties to buy…

Q: Arbitrage Pricing Theory a. Explain the Concepts "Law of one Price" and "Opportunity Cost"

A: Law of One Price: The One Price Rule is an economic principle that proposes that equal products…

Q: QI: Explain in details the Liquidity gaps time profiles and how the gap profiles changes.

A: In finance, liquidity refers to the ability of a business or an individual of converting its assets…

Q: Is the “forward price” the same thing as the “value of the forward contract” Explain.

A: Derivative is defined as the contract, which are between the two or more parties, who has the value…

Q: What is the meaning of operating leverage?

A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…

Q: Discuss the differences between a market order, limit order, and stop order.

A: Solution: Stock market is the place where securities are traded in market. There are different types…

Q: Define Arbitrage Pricing Theory (APT)

A: Arbitrage is the method of making profit from the temporary change in the cost of shares by buying…