True or False Please answer both. 1. High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price. 2. When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firm's profitability.

Q: In order to arrive at an intrinsic value for the stock of a company when using the Corporate…

A: Corporate Valuation Model:- This model is also known as the cash flow method, it helps in suggesting…

Q: 1. Capital structure is important as it helps maintains a proper and adequate level of capital,…

A: Capital Structure refers to a specific combination of debt and equity used by a company for…

Q: is(are)the reason(s) for profit maximization not a reasonable goal for firms. a. Profit concept…

A: Profit Maximisation Concept aims at carrying out the business activities in such a way that the…

Q: Which of the following statements is TRUE? a. The primary goal of financial management is to…

A: Financial Management deals with the maximization of shareholder worth, reduce the cost of finance…

Q: Ratio analysis is an important tool used by financial analysts in determining the future value of a…

A: Ratio analysis is a technique used in financial analysis to evaluate the financial performance of a…

Q: __________ focus more on underlying determinants of future profitability than the past price…

A: The investor predicts the future price movements of the stocks using past patterns. Different…

Q: which of the following statements is false? O When a buyer values a target firm, the appropriate…

A: Going concern value is a value that expects that the organization will remain permanently in the…

Q: 3. As an investor, you are interested in creating a portfolio of assets that can reduce the overall…

A: A portfolio of assets are a combination of different assets which are such that they reduce the…

Q: a. What is the meant beta (β)? How would you interpret if β=1, β>1 and β<1?

A: Beta coefficient shows the systematic risk of the assets. The beta factor shows the systematic risk…

Q: The primary goal of financial management is achieved thru maximizing stock price O maximizing…

A: Financial management The management of money in a business is known as financial management.…

Q: explain these two briefly

A: Management Risk: Management risk implies the risk of negatively affecting the holdings of the…

Q: You believe that both financing and investing decisions contain fresh information   of firm’s…

A: For businesses, there are two primary forms of funding available: debt finance and equity financing.…

Q: ou observed that high-level managers make superior returns on investments in their company’s stock.…

A: The Efficient Market Hypothesis (EMH) is a theory in finance that states that financial markets are…

Q: In examining investors’ preferences for dividends, it is useful to begin with the concept of…

A: Dividends are the amount which are distributed by the Company out of the profits earned during the…

Q: Select all the TRUE statements     The goal of the corporate financial manager is to maximize the…

A: The Ask price of a stock is the minimum price at which the seller agrees to sell the stock. The Bid…

Q: 1.Financial distress is least apt to lead to A. Increase dividends B.financial restructuring…

A: Financial distress may result in asset restructuring, stock issuance, liquidation, and financial…

Q: How does a firm's dividend policy reflect its approach to financial decision-making, and what are…

A: The concept ensures that the company prioritizes its investments and growth before committing to…

Q: Analysts and investors often use return on equity (ROE) to compare profitability of a company with…

A: The objective of the question is to understand which investment option a rational investor would…

Q: The dividend ____ states that investors will tend to be attracted to firms that have dividend…

A: The dividend "CLIENTELE EFFECT" states that investors will tend to be attracted to firms that have…

Q: Firm A generates more cash flow while taking less risk than Firm B. The stock price of Firm A should…

A: Stock also called shares or equity is ownership in a company. When you own stock in a company you…

Q: When trying to estimate the cost of equity for a firm using the CAPM, it is possible to find the…

A: The capital asset pricing model (CAPM) is one of the methods used to compute the cost of equity…

Q: Indicate whether the following statements are true or false. If the statementis false, explain…

A: true

Q: Is this statement true or false? Give a reason for your answer. " Relevant or not, frequent changes…

A: Dividend policy is a policy that determines the division of earnings into dividend and retained…

Q: "Financial manager

A: Financial managers are the person who is responsible for the financial health of the company and…

Q: Which

A: Shareholders are considered as the owners of the company. It means an overall wealth of the…

Q: The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value…

A: Free Cash Flow tells the amount of cash generated by a company. In short a free cash flow gives the…

Q: a) Elaborate on business risk and financial risk. Suppose Firm A has greater business risk than Firm…

A: answers to the above questions are given below :

Q: Which of the following statements about Capital structure is not true Select one: a. None of the…

A: Capital structure is the proportion of funds to be financed by various types of sources of funds.…

Q: In theory, should a firm be equally concerned with stand-alone,corporate, and market risk? Would…

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: Which of the following statements is least accurate? A. The variance on a well-diversified portfolio…

A: The dividend is distribution of profits to the shareholders of company and dividend is taxable in…

Q: According to Modigliani and Miller, a firm's dividend policy is irrelevant:   if the…

A: According to Modigliani and Miller's dividend irrelevance theory, a firm's dividend policy is…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.