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q show social and regulatory factorsregulatory climate and legislation against the environmental degradation may impair the profitability of the
q show external business riskexternal risk is the result of operating conditions imposed on the firm by circumstances beyond its control the external
internal business risk associated with the operational efficiency of the firm the operational efficiency differs from company to company the
q what do you mean by business riskbusiness risk is that portion of the unsystematic risk caused by the operating environment of the business
q what is unsystematic risksunsystematic risks stems from a managerial inefficiency technological change in the production process availability of
q what is purchasing power riskvariations in the returns are caused also by the loss of purchasing power of currency inflation is the reason behind
q can you explain dispersion methoddispersion method help to assert risk in receiving a return on investment the greater the potential dispersion the
q interest rate risk in financial managementinterest rate risk is the variation in the single period rates of return caused by the fluctllaoons in
market risk as that portion of total variability of return caused by the alternating forces of bull and bear markets when the security index moves
q explain systematic risks in financial managementsystematic risk in non-diversifiable and is associated with the securities market as well as
q causes of risks1 wrong decision of what to invest in2 wrong timing of investments3 nature of instruments invested such as shares or bonds chit
q illustrate modern method of measurementsholding period yield the holding period yield is one of the modern techniques on measuring return it serves
q calculate average annual returnan investor buys a bond in 1978 maturity in 1980 at rs900 it has a maturity value of 10 years and par value of rs
q explain traditional method of measurementcomputation of yield to measure a financial assets return is the simplest and oldest technique of
meaning of returnsthe return from holding an investment over some period - say a year is simply any cash payments received due to ownership plus the
q what do you mean by present value of a future sumthe present value of a future sum will be worth less than the future sum because one foregoes the
goral is required to pay five equal annual payments of rs 10000 each in his deposit account that pays 10 interest per year find out the future value
q future value of a series of equal cash flowsquite often a decision may result in the occurrence of cash flows of the same amount every year for a
q explain compound value conceptthe compound value concept is used to find out the fv of present money it is the same as the concept of compound
q reasons for time preference of money1 future uncertainties one of the reasons for preference for current money is that there is a certainty about
q what do you mean by time value of money the concept of tvm refers to the fact that the money received today is different in its worth from the
q show financial management processthe financial management process begins with the financial planning and decisions while implementing these
q financial management in marketing departmentthe marketing department of a firm is concerned with the ultimate activity of the firm le the selling
the personnel department of a firm is entrusted with the responsibility of recruitment training and placement of the staff for the firm the
financial management and materials departmentthe materials management is of utmost importance in a manufacturing firm and covers the areas such as