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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.
The sum of the value added by all firms equals total?
The market value of the final product
What is market value of capital employed and how is the evaluation?
the market value of capital is a company's to market value minus is liability
What is the mix of optimal capital structure?
There is nothing called optimal capital structure. optimal capital structure for a company refers to the composition of debt and equity, where the firm cost of capital is the lowest and value of the firm the highest. Optima capital structure for one company can not be same for the other company as well as the firms differ from each other in their basic characteristics. Even if the firm have same basic characteristics, they differ in Human resource, skill set etc.
Do successful firms generate long term profits by delivering unsurpassed value to their customers?
the answer is True
Is a firms cost of capital influenced by net income capital structure or par value of common stock?
Capital structure
Which one of the following selects the combination of investment proposals that will provide the greatest increase in the value of the firm within the budget ceiling constraint?
Capital rationing
How do free cashflows and weighted average cost of capital interact to determine a firms value?
they interact because of the gravity
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.
Is it better to use book value versus market values of debt and equity rather than book values to calculate a firms Weighted Average Cost of Capital?
HIII. I am taking accounting and in my opinion market values of debt is way better to calculate a firms weight average cost of capital... hope i helped even just a little
What is the value of gas rationing stamps?
i don't know buy em for ten bucks though
What is the value of World War II rationing coupons dated 1945?
$25 see ebay
What is the effect of rate of inflation changes on the value of the firm?
Being that inflation is the decrease in the value of the dollar, it causes most firms to lose real value (they may still grow nominally). There are a few exceptions to this. For instance, if a firm is in a lot of debt, inflation helps them by making their debt smaller.
The sum of the value added by all firms equals total?
The market value of the final product
What is effect of corporate action on balance sheet?
The effect of corporate action on Balance sheet is:Stock Split: The number of shares outstanding increases.The face value of stock decreases(Equals Value divided by the stock split factor)No Cash Comes to the company.Retained Earnings and Share Capital remains the sameBonus Issue: The number of shares outstanding increases.The face value of shares remains sameNo cash comes to the companyShare capital and paid up capital increases but retained earningsdecrease.
If the market value added is positive the market value of the firm's outstanding share of stock a has been created or b has been destroyed or c has had no change or d is in the top performers?
the answer is A. if the market value of the firms investments exceeds the total capital invested in the firm, then sharholder wealth has been created to the extent of the difference.
What is the value of world war 2 rationing coupons dated 1945?
Rationing is a book that every one had when they went to a shop they could only have things that was on the list of the book and only have a certain amount of it.
