Explain various approaches for calculation of cost of equity.

What is cost of capital? Define cost of capital. Cost of capital computation based on certain assumptions. Discuss. Explain the classification of cost. Mention the importance of cost of capital. Explain the computation of specific sources of cost of capital. How over all cost of capital is calculated? Explain various approaches for calculation of cost […]

Calculate the value of the firm according to 10 net opening income and overall capitalization rate is 10%.

MODEL QUESTIONS Define capital structure. Differentiate the capital structure and financial structure. What is optimum capital structure? Discuss the various factors affecting the capital structure. Explain the capital structure theories. XYZ Ltd., expects a net income of Rs. 1,50,000. The company has 10% of 5,00,000 Debentures. The equity capitalization rate of the company is 10%. […]

Explain the merits and demerits of preference shares?

Sources of financing. Explain the various sources of financing. What is meant by security financing? What is debt financing? Critically examine the advantages and disadvantages of equity shares. Discuss the features of equity shares. What are the merits of the deferred shares? Explain the merits and demerits of preference shares? List out the types of […]

Explain the importance of financial management.

Business finance. What is finance? Define business finance. Explain the types of finance. Discuss the objectives of financial management. Critically evaluate various approaches to the financial management. Explain the scope of financial management. Discuss the role of financial manager. Explain the importance of financial management.  

Calculate the following ratios for Shaybah Plc

Question 1 Required: 1.1 Calculate the following ratios for Shaybah Plc: Gross Profit Margin Net Profit Margin Net Asset Turnover Receivable Days Payable Days Return on Capital Employed Debt / Equity Ratio Return on Equity (12 marks) 1.2 Comment on the financial performance of Shaybah Plc between the years 2020 and 2022 using the ratios […]

Explain why interest rates change in the economy and the impact on the yield curve.

Interest Rates Organizations must obtain money to exist. Think about the balance sheet; assets equal liabilities (debt) plus equity (the money contributed by the owners). Even equity financing has a cost; no one would want to invest in a company if they were not going to get a return. Organizations must provide the minimum return […]

What is the difference between capital and money markets and why is it important to the issuing company?

Financial Markets Explain financial markets and ensure the following points are addressed. What is the difference between capital and money markets and why is it important to the issuing company? Provide a short explanation of the securities traded in capital and money markets. Include both capital and money market securities, Identifying in which market the […]

Why does finance add back depreciation and amortization in its measure of economic returns?

The Finance Perspective Why finance is obsessed with cash and the future Note that some questions may have more than one answer. You oversee the purchasing department of Best Buy, the electronics and appliance retailer, and are concerned about the funding gap in your cash conversion cycle. Which of the following will not reduce the […]