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What stream of income is not affected by how a firm is financed?
Net Working Capital
What is levered firm?
A firm that has no debt.
If the firm's sales revenue income exceeds its expenses the firm has earned a profit?
If a firm's sales revenue exceeds its expenses, the firm has earned a profit.
What is the installment price minus the down payment equal to?
amount financed
What types of services are provided by the firm BDO?
BDO is an accounting firm, the fifth biggest firm in the world. The firm is actually a group of accounting firms that are combined to be a part of the large firm BDO. They offer services both in the United States and the rest of the globe.
What stream of income is not affected by how a firm is financed?
Net Working Capital
Which group of ratios shows the extent to which the firm is financed with debt?
liquidity ratio
What is dressing conservatively?
dressing conservatively means showing no skin, but still looking good
Need a sentence for the word conservatively?
Elderly people are more likely to dress conservatively.
Are the total assets of a firm financed with liabilities and stockholder equity?
This will depend on what the liabilities consist of. If you are including loans and issuing notes, then this statement would be true.
Company laws relating to financial structure?
The right side of a firm's balance sheet, detailing how its assets are financed, including debt and equity issues.
What does conservatively mean?
Conservatively means to view things in a conservative manner, in a traditional way. In a way that is opposing of change.
How are the current assets of each firm financed?
Current assets of a firm are typically financed through a combination of short-term liabilities and long-term equity. Short-term liabilities, such as accounts payable and short-term loans, provide immediate funds for operational needs. Additionally, retained earnings from past profits can also contribute to financing current assets. The specific mix of these financing sources can vary based on the firm's financial strategy, industry, and market conditions.
How should the working capital requirement of a firm be financed?
There are many ways of funding the working capital of a business: * Overdraft * Loan * Equity * Invoice discounting or factoring
What is value of the firm under MM theory?
Under Modigliani-Miller (MM) theory, the value of a firm is determined by its earning power and the risk of its underlying assets, rather than its capital structure or the way it is financed. In a perfect market, the value of the firm remains constant regardless of whether it is financed by equity or debt. This is because investors can create their own leverage by borrowing on their own account, thus making the firm's capital structure irrelevant to its overall value. However, this theory holds true only under certain assumptions, such as no taxes, no bankruptcy costs, and perfect information.
What is miller - modigliani?
Quoted from Wikipedia: "The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed. It does not matter if the firm's capital is raised by issuing stock or selling debt. It does not matter what the firm's dividend policy is. Therefore, the Modigliani-Miller theorem is also often called the capital structure irrelevance principle."
What is modigliani miller hypothesis?
Quoted from Wikipedia: "The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by how that firm is financed. It does not matter if the firm's capital is raised by issuing stock or selling debt. It does not matter what the firm's dividend policy is. Therefore, the Modigliani-Miller theorem is also often called the capital structure irrelevance principle."
