In a less-developed financial system, which one of the following statements hold good? Institutional investors play an important role in capital formation Investment Bankers play an important role in capital formation Savings are converted into productive assets in a short period of time Cost of capital is expected to low
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In a less-developed financial system, which one of the following statements hold good?
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- Which of the following is a benefit of using financial investment to raise financial capital? there is an impact on the ownership of the firm it is accessible to start ups there is added pressure for the business to succeed it is the most sraightforward approachRobust internal capital markets are an effect of firms benefitting from Group of answer choices Economies of scale VRIO financial economies of scopeAssume that the economy can experience high growth, normal growth, or recession. Under these conditions, you expect the following stock market returns for the coming year: State of the Economy High Growth Normal Growth Recession Probability 0.2 0.7 0.1 a. Compute the expected value of a $1,000 investment over the coming year. If you invest $1,000 today, how much money do you expect to have next year? What is the percentage expected rate of return? Return 45% 20% - 4% Instructions: Enter dollar values rounded to the nearest whole dollar and percentages rounded to one decimal place. The expected value is $ and the expected rate of return is b. Compute the standard deviation of the percentage return over the coming year. Standard deviation = = % % %. c. If the risk-free return is 7 percent, what is the risk premium for a stock market investment? Risk premium
- The decrease in savings causes the decrease in supply of loanable funds. Select one: True FalseWhy would lenders want to see that a business already has some level of capitalization before giving it access to more capital by means of a loan?When should the Investment in physical assets be capitalized?
- Capital formation is said to be facilitated by financial intermediation. Describe the way in which this process takes place and illustrate it with an example.There’s no penalty for withdrawing funds from investments before they mature. True or falseFill in each statement with the appropriate capital investment analysis method: Payback, ARR, NPV, or IRR. Some statements may have more than one answer. a. نه ن ن ن نه b. C. d. e. is (are) more appropriate for long-term investments. highlights risky investments. shows the effect of the investment on the company's accrual-based income. is the interest rate that makes the NPV of an investment equal to zero. requires management to identify the discount rate when used.
- Investors must go for investments that are liquid to ensure availability of funds when needed. Is it true or false?The role of strategic planning in solving the economic recession crisis in the real estate sector.If signs of an economic slowdown abroad and domestically do materialize, what would be your corporate saving strategies that you would implement?
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