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Explain briefly the traditional view of the relationship between the capital structure and the value of the firm?
The traditional view of a firms capital structure is the process of increasing goodwill value of the firm, while limiting the use of capital expenses and controlling capital costs. The first achieves this through materializing its limited finances through financial leverage.
Why do savers and investors work through financial intermediaries?
Savers and investors work through financial intermediaries because these institutions provide expertise, liquidity, and risk management that individuals may lack. Financial intermediaries, such as banks and investment firms, facilitate the efficient allocation of capital by connecting those with surplus funds to those in need of financing. They also offer diversified investment options, reducing individual risk through pooled resources. Additionally, intermediaries can navigate complex financial markets, making it easier for savers and investors to achieve their financial goals.
Is most financing in the US done through the direct or the indirect markets?
Most of the financing in the United States, however, is done indirectly through financial intermediaries who substitute their credit for the credit of the borrower (user) of funds.
How is money created in the modern financial system?
In the modern financial system, money is created primarily through the process of fractional reserve banking. When a bank receives deposits from customers, it is required to keep only a fraction of those deposits on reserve and can lend out the rest. This creates new money in the form of loans, which increases the money supply in the economy. Additionally, central banks can also create money through a process called quantitative easing, where they purchase financial assets to inject money into the economy.
The three parts of the Federal Reserve System are the Reserve Banks the Federal Open Market Committee?
The three parts of the Federal Reserve System are the Reserve Banks, the Board of Governors, and the Federal Open Market Committee (FOMC). The Reserve Banks serve as the operating arms, implementing monetary policy and providing financial services. The Board of Governors oversees the system and formulates policies, while the FOMC is responsible for setting monetary policy and regulating the money supply through open market operations. Together, these components work to promote a stable financial system and foster economic growth.
What is financial structure of a company?
The financial structure of a company refers to the composition of its funding sources, including debt and equity. It outlines how a company finances its operations and growth through various instruments such as loans, bonds, and shareholder equity. A balanced financial structure is crucial for maintaining liquidity, minimizing financial risk, and ensuring sustainable growth. The mix of these components can significantly influence the company's cost of capital and overall financial stability.
Explain briefly the traditional view of the relationship between the capital structure and the value of the firm?
The traditional view of a firms capital structure is the process of increasing goodwill value of the firm, while limiting the use of capital expenses and controlling capital costs. The first achieves this through materializing its limited finances through financial leverage.
Do have financial modeling experience Explain?
Financial modelling is the use of financial mathematics for forecasting, capital budgeting, and scenario planning. It is an experience that is learnt well through job practice rather than in School.
What is step through accounting?
Step-through accounting is a method used to analyze and understand the flow of financial transactions within a business. It involves breaking down financial events into individual components or steps, allowing accountants and stakeholders to trace how transactions impact the company's financial statements. This approach enhances clarity and accuracy, making it easier to identify discrepancies or errors in financial reporting. It is particularly useful for auditing and ensuring compliance with accounting standards.
How can students request financial assistance through a formal letter?
Students can request financial assistance by writing a formal letter to the appropriate organization or institution. In the letter, they should clearly explain their financial need, provide any relevant supporting documents, and politely ask for assistance. It is important to be specific about the amount needed and how it will be used.
What are the main components of organizational behavior?
The main components of organizational behavior include individuals, groups, and the structure of an organization. Individuals contribute to the behavior and performance within an organization, while groups determine how individuals interact and work together. The structure of an organization influences the behavior of its members through factors such as hierarchy, communication channels, and decision-making processes.
What represents a form of communication through financial reporting but not through financial statements?
I think balance sheet
What is the financial structure in Kenya?
Kenya has a diversified financial structure that includes traditional banking institutions, microfinance institutions, savings and credit cooperatives (SACCOs), and mobile money services like M-Pesa. The financial sector is regulated by the Central Bank of Kenya and the Capital Markets Authority to ensure stability and compliance with financial regulations. The government also promotes financial inclusion through initiatives like the Kenya Bankers Association's Shared Value Initiative and the Huduma number program.
What is basic components of budget management system?
A basic budget management system typically includes components such as budget planning, which involves setting financial goals and allocating resources; budget execution, where actual spending is monitored against the planned budget; and budget reporting, which provides insights into financial performance through regular reports and analyses. Additionally, it often incorporates tools for tracking expenses and revenues, forecasting future financial scenarios, and adjusting budgets as necessary to meet organizational objectives.
Who is in control of a nationalized company?
When a Company is nationalised or floated by the Government, the eventual owners are the citizens of the country through their Government. It is the Government who decide on the financial structure, management, and staffing to run such a Company. [alikban]
What are nutritional components?
Nutritional components are components that add value to your body. These components can also assist your body in carrying through essential biological functions.
How do you explain sound to no hearing voice?
Explain vibrations, which they can feel. Then explain that sound is vibrations carried through the air.
