Since both the companies have equal unit of sales so at first we could think they will have same sales risk and business risk but it cant be because they might have difference in pricing so sales risk cannot be the ans and since business risk is a joint effect of operating risk and sales risk that aRead more
Since both the companies have equal unit of sales so at first we could think they will have same sales risk and business risk but it cant be because they might have difference in pricing so sales risk cannot be the ans and since business risk is a joint effect of operating risk and sales risk that also cannot be the ans as both the companys have different sales risk
Hence ans C
Hope it helps
In the seed stage companys is financed for market research and product development But the question is asking about commercial production and sales mai jo kharcha lagega that is provided in early stage Late stage mai for expansion ke liye provide hota hai and mezzanine mai before IPO jo rupiya chaiyRead more
In the seed stage companys is financed for market research and product development
But the question is asking about commercial production and sales mai jo kharcha lagega that is provided in early stage
Late stage mai for expansion ke liye provide hota hai and mezzanine mai before IPO jo rupiya chaiye hota hai uske liye
Hence ans is C
Hope it helps
See there's a conflict between shareholders and managers regarding risk tolerance on the basis that shareholders wants company to take specific risk as all risks are not avoidable company has to take certain risky project which might look risky but can be a great asset for the company . So when compRead more
See there’s a conflict between shareholders and managers regarding risk tolerance on the basis that shareholders wants company to take specific risk as all risks are not avoidable company has to take certain risky project which might look risky but can be a great asset for the company . So when company’s undertake risky projects it might pay off and it will create companys value and hence cteate shareholders welath
But on the contrary management doesnt want company to take risk because if company invest in risky project from borrowed funds theres a chance that the project might not pay off well and theres a risk that company might go bankrupt if it continues to take risk and the management can loose their jobs . Since interest are paid on debt there will be no free cash flows left for the management .
Its like a status co bias in behavioural finanace
This is risk tolerance relation in this respect
Hope it helps
Precautionary demand for money is a positive function of GDP. Precautionary money means you are saving more for the unforseen event happening in future . How its is a positive function of GDP ? So as the GDP rises aggregate income rises so people will have more money to save for unforseen event happRead more
Precautionary demand for money is a positive function of GDP. Precautionary money means you are saving more for the unforseen event happening in future . How its is a positive function of GDP ? So as the GDP rises aggregate income rises so people will have more money to save for unforseen event happening in future
Next we have Transaction money . It is also a positive function of gdp .how ? Because when the gdp rises on account of real factors aggregate income rises so people have more money for consumption so the money will change hand at a faster rate . Hence it is positively or directly related to GDP
Now comes speculative demand for money
So it is a negative function of interest rate because when the interest rate rises people should have spend less but in this case people invest in bond market where the prices of bond will be low
Speculative money is a positive function of risk because as the risk rises and investor being risk averse would avoid bond as there is chance of company not being able to pay so they will hold more money
So Ans will be A
Hope it helps
So TWROR matlab kitna rupiya kitna ban gaya LOUNGO TWROR WILL BE AT THE END OF FIRST YEAR SHARE PRICE WENT FROM 100 TO 110 AND PAID A DIVIDEND =115/100 2ND YEAR HE PLANS TO SELL THE SHARE AFTER IT FELL TO 100 2ND YEAR = 105/110 TWROR = 115/100×105/110 =((1.09)y^x .5 )-1 ×100 = 4.77 Hope it helps
So TWROR matlab kitna rupiya kitna ban gaya LOUNGO TWROR WILL BE
AT THE END OF FIRST YEAR
SHARE PRICE WENT FROM 100 TO 110 AND PAID A DIVIDEND
=115/100
2ND YEAR HE PLANS TO SELL THE SHARE AFTER IT FELL TO 100
2ND YEAR = 105/110
TWROR = 115/100×105/110 =((1.09)y^x .5 )-1 ×100 = 4.77
Hope it helps
pension cost
We include amortization of remeasurement when it crosses a certain threshold like 10% higher of FVA or PBO
We include amortization of remeasurement when it crosses a certain threshold like 10% higher of FVA or PBO
See lessLEVERAGE
Since both the companies have equal unit of sales so at first we could think they will have same sales risk and business risk but it cant be because they might have difference in pricing so sales risk cannot be the ans and since business risk is a joint effect of operating risk and sales risk that aRead more
Since both the companies have equal unit of sales so at first we could think they will have same sales risk and business risk but it cant be because they might have difference in pricing so sales risk cannot be the ans and since business risk is a joint effect of operating risk and sales risk that also cannot be the ans as both the companys have different sales risk
See lessHence ans C
Hope it helps
Venture capital fund investing
In the seed stage companys is financed for market research and product development But the question is asking about commercial production and sales mai jo kharcha lagega that is provided in early stage Late stage mai for expansion ke liye provide hota hai and mezzanine mai before IPO jo rupiya chaiyRead more
In the seed stage companys is financed for market research and product development
See lessBut the question is asking about commercial production and sales mai jo kharcha lagega that is provided in early stage
Late stage mai for expansion ke liye provide hota hai and mezzanine mai before IPO jo rupiya chaiye hota hai uske liye
Hence ans is C
Hope it helps
Principal-agent relationship
See there's a conflict between shareholders and managers regarding risk tolerance on the basis that shareholders wants company to take specific risk as all risks are not avoidable company has to take certain risky project which might look risky but can be a great asset for the company . So when compRead more
See there’s a conflict between shareholders and managers regarding risk tolerance on the basis that shareholders wants company to take specific risk as all risks are not avoidable company has to take certain risky project which might look risky but can be a great asset for the company . So when company’s undertake risky projects it might pay off and it will create companys value and hence cteate shareholders welath
See lessBut on the contrary management doesnt want company to take risk because if company invest in risky project from borrowed funds theres a chance that the project might not pay off well and theres a risk that company might go bankrupt if it continues to take risk and the management can loose their jobs . Since interest are paid on debt there will be no free cash flows left for the management .
Its like a status co bias in behavioural finanace
This is risk tolerance relation in this respect
Hope it helps
Demand of Money
Precautionary demand for money is a positive function of GDP. Precautionary money means you are saving more for the unforseen event happening in future . How its is a positive function of GDP ? So as the GDP rises aggregate income rises so people will have more money to save for unforseen event happRead more
Precautionary demand for money is a positive function of GDP. Precautionary money means you are saving more for the unforseen event happening in future . How its is a positive function of GDP ? So as the GDP rises aggregate income rises so people will have more money to save for unforseen event happening in future
See lessNext we have Transaction money . It is also a positive function of gdp .how ? Because when the gdp rises on account of real factors aggregate income rises so people have more money for consumption so the money will change hand at a faster rate . Hence it is positively or directly related to GDP
Now comes speculative demand for money
So it is a negative function of interest rate because when the interest rate rises people should have spend less but in this case people invest in bond market where the prices of bond will be low
Speculative money is a positive function of risk because as the risk rises and investor being risk averse would avoid bond as there is chance of company not being able to pay so they will hold more money
So Ans will be A
Hope it helps
Time value of money
So TWROR matlab kitna rupiya kitna ban gaya LOUNGO TWROR WILL BE AT THE END OF FIRST YEAR SHARE PRICE WENT FROM 100 TO 110 AND PAID A DIVIDEND =115/100 2ND YEAR HE PLANS TO SELL THE SHARE AFTER IT FELL TO 100 2ND YEAR = 105/110 TWROR = 115/100×105/110 =((1.09)y^x .5 )-1 ×100 = 4.77 Hope it helps
So TWROR matlab kitna rupiya kitna ban gaya LOUNGO TWROR WILL BE
See lessAT THE END OF FIRST YEAR
SHARE PRICE WENT FROM 100 TO 110 AND PAID A DIVIDEND
=115/100
2ND YEAR HE PLANS TO SELL THE SHARE AFTER IT FELL TO 100
2ND YEAR = 105/110
TWROR = 115/100×105/110 =((1.09)y^x .5 )-1 ×100 = 4.77
Hope it helps