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q business risk in companybusiness risk is the likelihood of a company experiencing changes in the level of its profit before interest as a result of
q availability of fresh issue of equitya fresh issue of equity finance maynt be readily available to a listed company or may be available on terms
q flexibility in debt financedebt finance is more elastic than equity in that various amounts can be borrowed at a fixed or floating interest rate
q redemption of debtequity finance is permanent capital that doesnt need to be redeemed while debt finance will need to be redeemed at some future
q ownership and control related issue of debtissuing equity is able to have ownership implications for a company particularly if the finance is
q cost related issue of debtdebt is cheaper in comparison of equity because debt is less risky from an investor point of view this is for the reason
q risk and return - issue of debtraising debt finance will raise the gearing and the financial risk of the company while raising equity finance will
a company is necessary by law to offer an issue of new equity finance on a pro-rata basis to its existing shareholders this makes sure that the
the difficulties associated with managing organisations with multiple objectivesto the level that an organisation faces a range of stakeholders then
q investors advantage from financial intermediationinvestors advantage substantially from financial intermediation becausea by investing in a market
q show advantages of financial intermediationthe advantages of financial intermediation are as followsinvestors are able to pool their funds in a
q describe about financial intermediationfinancial intermediation refers to the role of a bank or else other financial institution that serves to
q why convertibles might be an attractive source of finance for companies- convertibles is able to provide immediate finance at lower cost since the
potential sources of finance for very new businessesinitial owner finance is almost always the first source of finance for a business whether from
q lack of assets available to offer as collateral or securityif smes wish to access bank finance for instance then banks will wish to address the
q define about sme financesmes contribute in a significant way to many economies in the world moreover generating income in often large proportions
uncertainty concerning the businessit has been recognised in a variety of studies that the problem of adequately financing smes is a problem of
if dividends per share are in surplus of earnings per share then a company must be making the dividend payment out of reserves in other sense the net
q calculate the earnings per sharedividend cover is a measure of the relationship among dividends and earnings and may be calculated for the whole
q evaluate price earnings ratiothe pe ratio is in general regarded as an important ratio for equity investors the pe for a company may be utilizing
q define strong form efficiencyin robustly efficient market finance directors will be alert to the fact that market prices are an accurate reflection
q theoretical value of shareholdingi theoretical value of shareholdingtheoretical ex-rights value no shares in issuetimesmarket value no rights
q explain bonus or capitalisation issuesa rights issue is a approach of raising finance via the issue of shares to existing equity shareholders
q off balance sheet financinga finance charter exists when the substance of the lease is that the lessee enjoys substantially all of the risks and
q probability of success in application for debt financei have to advise you that there are signs of overtrading in our recent financial statements