FIN2601 Study guides, Class notes & Summaries

With increased debt comes greater risk, as well as higher potential reward. Therefore, the greater the financial ___________, the greater the potential risk and reward. - correct answer leverage Financial ________________ is the magnification of risk and return through the use of fixed-cost financing, such as debt and preference share capital. The more fixed debt a firm uses, the greater will be its expected risk and return. - correct answer leverage Which ratio measures the proportion of ...

T/F - Sole Proprietorship is the most common form of business ownership - correct answer T T/F - A Sole Proprietor may have to sell personal assets to pay off company debts - correct answer T T/F - Sole Proprietorship has unlimited liability - correct answer T When you the words Capital Market in a MCQ question should you think Long Term or Short Term? - correct answer Long Term T/F - Does this describe a Capital Market - A financial relationship created by institutions and arrangeme...

T/F - Sole Proprietorship is the most common form of business ownership - correct answer T T/F - A Sole Proprietor may have to sell personal assets to pay off company debts - correct answer T T/F - Sole Proprietorship has unlimited liability - correct answer T When you the words Capital Market in a MCQ question should you think Long Term or Short Term? - correct answer Long Term T/F - Does this describe a Capital Market - A financial relationship created by institutions and arrangeme...

T/F - Sole Proprietorship is the most common form of business ownershipT T/F - A Sole Proprietor may have to sell personal assets to pay off company debtsT T/F - Sole Proprietorship has unlimited liabilityT When you the words Capital Market in a MCQ question should you think Long Term or Short Term?Long Term T/F - Does this describe a Capital Market - A financial relationship created by institutions and arrangements that allows suppliers and demanders of long-term funds to make transac...

With increased debt comes greater risk, as well as higher potential reward. Therefore, the greater the financial ___________, the greater the potential risk and reward.leverage Financial ________________ is the magnification of risk and return through the use of fixedcost financing, such as debt and preference share capital. The more fixed debt a firm uses, the greater will be its expected risk and return.leverage Which ratio measures the proportion of total assets financed by the firms ...

FIN2601 Assignment 1 (QUIZ ANSWERS & CALCULATIONS) Semester 1 2024 - DUE 10 April Which of the following increases basis risk? - ANS-A large difference between the futures prices when the hedge is put in place and when it is closed out *Dissimilarity between the underlying asset of the futures contract and the hedger's exposure* A reduction in the time between the date when the futures contract is closed and its delivery month None of the above Which of the following is NOT tr...

FIN2601 Assignment 1 (QUIZ ANSWERS) Semester 1 2024 - DUE 10 April The investor believes the stocks in the portfolio will perform better than the market and the market is expected to do well *The investor believes the stocks in the portfolio will perform better than the market but is uncertain about the future performance of the market* All of the above Which of the following is approximately true when size is measured in terms of the underlying principal amounts or value of the un...

FIN2601 ASSIGNMENT QUIZ AND ANSWERS SEMESTER 1, 2024 - DUE APRIL 2024

FIN2601 ASSIGNMENT QUIZ AND ANSWERS SEMESTER 1, 2024 - DUE APRIL 2024

fin2601 EXAM PACK 2023