What is the firm value

Q: What is par value?

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: What is meant by the term financial leverage?

A: Borrowed Capital: The money which is borrowed by a company from outsiders for a specified period of…

Q: What is market value ratio?

A: Ratio is the relation between two different quantities obtained after dividing one by another.

Q: What are the differences between a money market and a capital market?

A: Two main sources of finance are: Internal sources External sources. Company requires funds for…

Q: Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: What does the volatility value represents?

A: Volatility for a given product or market index is a factual proportion of the scattering of profits.…

Q: How can we find Yield to maturity?

A: Yield to maturity (YTM) is the foreseen absolute profit for a bond if the bond holds until due or…

Q: ABC Bank offers Php Php 90,000 at the end of 2 years plus Php Php 224,000 at the end of 3 that the…

A: Fair market value(FMV) for an asset which generates several payments for investor is the present…

Q: What are the advantages of balance sheet?

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: What is market model?

A: A market model is a numerical portrayal of the exchanges among different members, financial powers,…

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 net present value?

A:

Q: What are capital resources?

A: Capital resources are goods produced and used to make other goods and services. Capital resources…

Q: What means Finance?

A: The term finance means the management of cash and incorporates activities like, projecting, savings,…

Q: What is the y risk-free investment?

A: Risk-free rate of return is the rate of return that an investor expects from an investment in any…

Q: Why are secondary market prices relevant for a firm

A: Secondary market can be defined as the market where securities which have been already issued in the…

Q: Define Liquidity Analysis?

A: Liquidity analysis is very essential as it shows the ability of the firm in paying short-term bills.…

Q: What is arbitrage?

A: Arbitrage It is the buying and offering of an asset to benefit from a distinction within the cost…

Q: What is the risk free return?

A: Rate of return is the return percentage which an investor gets from the money which has been…

Q: 1-Jan-20 100,000.00 800,000.00 26.00 Shs Outstanding SHE, in pesos MP per sh Div per sh Cost of…

A: Market value added:  MVAs are depictions of the value produced by the management of a firm through…

Q: What is equity security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: What is Market Value Added (MVA)?

A: The market value added is the difference of the current value of the company and the equity capital…

Q: What is market value ratios?

A: Introduction: Market value ratios help to assess the economic position of publicly dealt…

Q: What is private markets?

A: Private markets are generally platform for parties like venture capitalists, angel investors,…

Q: What mean finance

A: Finance is a broad term that can mean management of large amounts of money in a general sense.

Q: What is the purpose of portfolio management?

A: A portfolio is a systematic method of selection of investment mix to get benefit with a limited risk…

Q: How does a firm value an asset?

A: Assets means resources of the business that the business owns. It may be tangible assets or…

Q: Suppose that we can describe the world using two states and that two assets are available, asset K…

A: The rate of return on an investment with no default risk is referred to as the "risk-free rate."…

Q: What is market multiple analysis?

A: Answer: Market multiple analysis: A multiple analysis of market is a form of financial modelling to…

Q: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: why is there a trade-off between liquidity and solvency?

A: A firm may raise capital through different sources, including equity shares, preference shares,…

Q: What is capital

A: Capital is the value of money which is invested in the organisation for making the financial…

Q: How does measure liquidity?

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.