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: 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: 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: 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: "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: 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.