1. Define financial system? 2. Explain the major component of financial system? 3. Discuss various classification of banking as per the RBI Act? 4. Explain the role of NBFI in Indian economy? 5. What is financial market? 6. Explain the money market instrument? 7. What are the major stock market instruments? 8. Discuss the stock […]
lease financing. 1. Explain the types of leasing. 2. Discuss the advantages of lease financing. 3. Explain the features of venture capital. 4. Explain the types of factoring. 5. What is FDI? Explain it. 6. Discuss the functions of merchant banking. 7. Critically evaluate the role of credit rating agencies. 8. Enumerate the types of […]
Capital leverage 1. Write a note on trading on equity. 2. What is meant by working capital leverage? 3. What is leverage? Mention different types of leverage? 4. Explain the operating leverage. 5. Discuss the concept of financial leverage. 6. How compared leverage is calculated? 7. Explain the working capital leverage.
MODEL QUESTIONS 1. Define capital structure. 2. Differentiate the capital structure and financial structure. 3. What is optimum capital structure? 4. Discuss the various factors affecting the capital structure. 5. Explain the capital structure theories. 6. XYZ Ltd., expects a net income of Rs. 1,50,000. The company has 10% of 5,00,000 Debentures. The equity capitalization […]
Describe the use of leverage on the optimal capital structure, focusing on the cost of capital, risk, cash flows, and return to the owners. Debt is often viewed as bad and many believe that the goal of management should be to retire debt as quickly as possible. While this is true for many organizations, it […]
Organizations must obtain money to exist. Think about the balance sheet; assets equal liabilities (debt) plus equity . 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 that investors require to let the organization […]
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 […]
The Finance Perspective Why finance is obsessed with cash and the future Please note that some questions may have more than one answer. 1. 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 […]
1. Increased leverage allows companies to control more assets and increase their ROE. What’s bad about leverage? A. It reduces productivity, which can decrease overall ROE. B. Leverage-based profits are not cash-based and are ignored by finance. C. Leverage multiplies losses, too, as it increases a company’s risk D. There is nothing bad about leverage—using […]
Stocks Overview Investing in stocks is an option when planning for retirement or other financial management decisions. In this activity, you will research how to evaluate stocks as an investment option. Instructions In a 1–2-page paper, please respond to the following: Explain the differences in stock trading between two different stock exchanges. Identify two different […]
