Explain and differentiate what is meant by market capitalization of the firm, market value of the firm, and enterprise value of the firm. Define a primary and secondary market for securities and discuss how they differ. How i...
What is meant by the horizon value of a business? How can it be estimated? Define or describe the following term: Capital gains yield. Explain the market conditions under which fundamental analysis can lead to abnormal return. What is the difference betw...
The British Constitution is usually described as “unwritten", but this is misleading. Parts of the British Constitution are written and some are not. What is meant by "unwritten" is that it is not summarized into one single document as "the British Constitution". Therefore, it is more accur...
While much of the flight to safety flowed in Germany amid concerns over the euro area two years ago, but now that capital is moving into Switzerland and the United States, he said. With the Swiss central bank out of the market for euros, the dollar could reach parity with the euro as...
It is keen to purchase a piece of land in Ipoh for its new factory. Sapu, one of its directors, owns a piece of land in Ipoh, which is ideally suited for the company’s new factory. Sapu has offered to sell the land to FGH Sdn Bhd at its market price of RM2·5 million. The...
Capital markets can be broken down into the primary and secondary markets. The primary market is where new securities are sold for the first time, such as when a company goes public with aninitial public offering (IPO). This allows companies to raise capital directly from investors who buy th...
1.7 “Arbitrage pricing theory is an extension of the capital asset pricing model.” Explain this statement.1.8 “The capital structure decision of a company is a trade-off between bankruptcy costs and the tax advantages of debt.” Explain this statement.1.9 What is meant by risk ...
4. What is meant by the term joint venture? Identify four joint venture configurations.Business Corporation:A business corporation is an organisation that is jointly formed by a group of individuals. The rights of the company are separate from the persons involved. A business co...
Capitalism is the creation of wealth and the ownership of capital, production, and distribution by individuals. A free market system can be seen as a stricter type of capitalism in which government is denied a role in regulating commerce. ...
(a) What is meant by the dual-track approach of accounting for the government-wide level besides the fund level? (b) How does it compare to a worksheet approach? Funds Funds are the pool of money kept aside for a...