QUESTION Given that advanced Magnetics was up by 439 percent for 2006, why didnt all investors hold advanced magnetics? ying and selling transaction. So, if everybody had expected that the shares will be up by 439%, then the shares would have not sold at all. At the same time, if everybody had demanded the share, […]
Date: September 2nd, 2020
QUESTION Interest rates on bank loans exceed rates on commercial paper. Why dont all firms issue commercial paper rather than borrow from banks? sible to issue commercial paper every 270 days since there are many fixed charges that the corporation has to pay. Hence these two securities are completely different. Term to maturity is very […]
Date: September 2nd, 2020
QUESTION How and why are regular accounting data modified for use in financial management? Financial management is mainly concerned with decision making. In decision making cash flows are considered to evaluate the feasibility and profitability associated with any decision. Cash flows give the true and real picture about the projects. Accounting data gives the profit […]
Date: September 2nd, 2020
QUESTION Explain why it is difficult to value a young, rapidly growing company. involve determining the number of years that the firm will take in order to be profitable. The firms that become valuable in a short period of time are more valuable than the firms that take a longer time to be profitable. Thus […]
Date: September 2nd, 2020
QUESTION Differentiate between net income, EPS, EBITDA, net cash flow, NOPAT, free cash flow, MVA, and EVA. What is the primary purpose of each item; that is, when and how is it used? ow ascertains operating cash flows that the company generates after meeting the capital expenditures. ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
Date: September 2nd, 2020
QUESTION Credit Instruments Describe each of the following:a. Sight draft b. Time draft.c. Bankers acceptance.d. Promissory note.e. Trade acceptance. a. Sight draft- is a negotiable instrument which gives the exporter the right to get the payment as soon as the draft is presented to the paying bank or the importer.b. Time draft- is that negotiable […]
Date: September 2nd, 2020
QUESTION Cash management versus liquidity management what is the difference between cash management and liquidity management? Solution: Cash management involves collection, handling and usage of cash. It involves assessing cash flow, market liquidity, and investments. Liquidity management means ensuring that the firm maintaining sufficient cash and liquid assets to meet the short term debt¦ . […]
Date: September 2nd, 2020
QUESTION how we treat when we purchase new asset and we already have an old one with poor performance with solvage value When we purchase a new asset and we have an old one with poor performance, then we estimate the salvage value of the old asset and calculate the profit or loss on the […]
Date: September 2nd, 2020
QUESTION What is the distinction between comparability and consistency? Comparability of financial statements over varying accounting period means that the financial statements of one period are comparable with the financial statements of another period. This helps the users of those statements in determining the trends of the companys financial performance and its position. On the¦ […]
Date: September 2nd, 2020
QUESTION 1. The Franco Sette, Inc., has net working capital of $6,100, long-term debt of $10,400, total debt of $15,200, and owners equity of $18,900. What is the value of The Bake Shoppes net fixed assets? A. $12,800 B. $16,500 C. $18,900 D. $21,300 E. $23,200 Solution: Option E is correct. Amount Formula Used Total […]
Date: September 2nd, 2020
