Trade theory of capital structure states that capital structure of a company is a trade off between   Tax savings and bankruptcy or financial distress cost   Debt financing and equity financing   Tax shields and equity cost   None of the above

Q: A capital budget estimates a firm’s expenditures for labor costs and other monthly expenses.; True…

A: A firm refers to a commercial company or enterprise that purpose is to buys and sells products or…

Q: Give two examples of fixed capital

A: Fixed capital:                 Fixed capital is defined as, it is a tangible things or stocks, owned…

Q: To attract, satisfy, and retain the better customers during the upcoming year, a business would…

A: Customer satisfaction can be stated as the measurement that evaluates how happy the clients are with…

Q: The Impact of Capital Structure on Financial Performance of Technology-Based Small and Medium…

A: In examining the impact of capital structure on financial performance, several key aspects come into…

Q: What factors should businesses consider when determining financing needs to determine whether they…

A: Financing needs refer to the funds required by individuals, businesses, or organizations to meet…

Q: What exactly are capital expenditures, and how do they vary from operating costs?

A: The two primary categories of business expenses are operational expenses and capital expenses.

Q: xplain the importance of financial statements in a given enterprise

A: or any business keen to remain relevant in an increasingly competitive marketplace, the importance…

Q: Why is it important to hold some liquid and some illiquid assets?

A: The objective of this question is to understand the importance of holding both liquid and illiquid…

Q: Identify a firm’s short- and longterm financial needs.

A: Strategic goals are of two types namely long term strategic goals and short term strategic goals.…

Q: Ratios can be grouped into certain categories, each of which reflects a particular aspect of the…

A: Strategy is a plan of action to achieve long term objectives. It can also be said as an art of…

Q: In the capital budgeting phase, what kinds of investments and expenses are usually considered?

A: The method used by a company to assess major programmes and acquisitions consists of capital…

Q: How are Capital Costs incurred?

A: A capital cost is incurred in a business when it spends money, uses collateral, or even takes debt…

Q: Explain the difference between equity capital and debt capital. Which category would be stocks fall…

A: Businesses need capital in order to maintain continuity with their day to day business operations. A…

Q: Can you tell me the disadvantages of accrual accounting residual income models and earnings…

A: Accrual accounting: This type of accounting is based on cash system accounting, the incomes and…

Q: Examine the Importance of Working Capital to Businesses.

A: Working capital is the amount of cash that a business intends to spend safely. It is the wealth…

Q: Balance Sheet is a statement of: Assets Capital Liabilities All of the above

A: All of the above

Q: In as many pages as needed explain what you would do with a stake of 25,000 dollars to make money…

A: The money can be invested in two ways, first is in long-term options that would keep the money…

Q: What are the bewitch gmbH target capital structure if the analyst uses current capital structure?

A: As an analyst calculates the target capital structure for the hypothetical firm Bewitch gmbH, an…

Q: How might the constant scrutiny and demand for consistentresults affect the long-term performance of…

A: Mutual funds are a pool of investment by different investors in securities such as stocks, bonds,…

Q: Explain how small business use the following capital sources: Internal Funds Trade Credit Equity…

A: Small businesses are those type of organizations that has limited resources and limited scale of…

Q: How can the Asset and Liability Management Committee can proactively manage the liquidity risk…

A: Asset and liability management is a method used by financial organizations to reduce financial risks…

Q: In your own words, explain the significance or importance of Financial Management in a business firm

A: Financial management can be defined as the area or function in an organization that deals with…

Q: What is the reason why most startup firms are not qualify for a factoring scheme to earn cash

A: Factoring helps a company to earn instant cash or money depending on potential profits owed in an…

Q: Discuss ANY TWO (2) strengths of the discounted cash flow method

A: Discounted cash flows Methods: Another strategy for registering expected paces of return is the…

Q: Explain capital budgeting and budgeting system;how are they related and what is their significance…

A: Capital budgeting and budgeting system are two very important concepts in business. They are related…

Q: Which capital budgeting technique(s) measure all expected future cash inflows and outflows as if…

A: Companies use capital budgeting techniques to assess potential investment opportunities and…

Q: Fund 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Risk High High High High High High Medium Medium…

A: To optimize his portfolio and adhere to specific investment guidelines provided by his financial…

Q: Cite 2 examples of Internal Financing for Sole Proprietorship, Partnership, and Corporation.

A: The sole proprietorship is an incorporated business run by one person. It is the most basic legal…

Q: Explain the profitability-risk trade-off of alternative methods of financing a given working capital…

A: Liquidity and profitability trade-offs have turned into a vital issue among any organization.it is…

Q: 19. Which of the following forms of capital provides market discipline for the firm? O a. Preferred…

A: Answer- (B) Subordinated Debentures Subordinated Debentures is  forms of capital provides market…