Question

In: Accounting

2) By the mid-1950s, there was an increases study in: Fixed asset management: capital budgeting. Efficient...

2) By the mid-1950s, there was an increases study in:

Fixed asset management: capital budgeting.

Efficient utilization of current assets.

Capital structure composition.

Dividend policy

How was this related to the study of finance?

Solutions

Expert Solution

Finance is a link between accounting, economics, and other related fields ofstudy.A financial manager must understand the Federal Reserve System, thecommercial banking system, and the interrelationships between various sectorsof the economy.BThe financial manager must know how to interpret and use financial statementsin assessing the firm’s performance and allocating the firm’s financial resourcesto generate the best return possible in the long run.C.The demand for financial management skills exists in many sectors of oursociety including corporate management, financial institutions, and consulting..Evolution of the Field of FinanceA.The field of finance is closely tied to economics and accounting but achievedrecognition as a separate field of study in response to the mergers, acquisitionsand growth of corporations in the early 1900s.B.As a result of the Great Depression, emphasis shifted from raising capital, tocapital preservation, maintenance of liquidity, and increased governmentintervention in the financial aspects of businesses.C.By the mid-1950s the field of finance had become more decision oriented withan emphasis on the analysis of resource utilization within the firm. Thisdecision-making focus was manifested in the increased study of:1.Fixed asset management:capital budgeting.2.Efficient utilization of current assets.3.Capital structure composition.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Part 2 Please study the following capital budgeting project and then provide explanations for the questions...
Part 2 Please study the following capital budgeting project and then provide explanations for the questions outlined below: You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $2.1 million in anticipation of using it as a toxic waste dump site but has recently hired another company to handle all toxic materials. Based on a recent appraisal,...
Give an example of a capital budgeting decision, capital structure decision, and a working capital management...
Give an example of a capital budgeting decision, capital structure decision, and a working capital management decision.
Applying the Efficient Market Hypothesis (EMH) to capital budgeting, which of the following statements is correct?   ...
Applying the Efficient Market Hypothesis (EMH) to capital budgeting, which of the following statements is correct?    a. In an efficient market the NPV for projects should on average be positive. b. Existing large firms can be considered evidence that the EMH is true. c. Existing large firms may exist because they may not have played the game long enough meaning they may still go insolvent. d. Firms can be considered to be a collection of projects; and existing firms a...
Applying the Efficient Market Hypothesis (EMH) to capital budgeting, which of the following statements is correct?   ...
Applying the Efficient Market Hypothesis (EMH) to capital budgeting, which of the following statements is correct?    Group of answer choices In an efficient market the NPV for projects should on average be positive. Existing large firms can be considered evidence that the EMH is true. Existing large firms may exist because they may not have played the game long enough meaning they may still go insolvent. Firms can be considered to be a collection of projects; and existing firms a...
1. What is capital budgeting? Discuss the five stages in the capital budgeting process. 2. Suppose...
1. What is capital budgeting? Discuss the five stages in the capital budgeting process. 2. Suppose a toy manufacturer is faced with the following collection of investment projects: (a) Opening a retail outlet (b) Introducing a new line of dolls (c) Introducing a new action figure in an existing line of action figures (d) Adding another packaging line to the production process (e) Adding pollution control equipment to avoid environmental fines (f) ) Computerizing the doll-molding equipment (g) Introducing a...
Categorize these transactions into Capital Budgeting, Capital Structure, and Working Capital Management decisions by putting (CB),...
Categorize these transactions into Capital Budgeting, Capital Structure, and Working Capital Management decisions by putting (CB), (CS), or (WCM) by each item: (10 points) A company purchasing a new fleet of corporate vehicles. A company divesting (spinning off) a business line A company repurchasing its own stock back from stockholders A company paying off its bondholders early A company demanding early payment on its accounts receivable 1A) How much should I sell my car for in 5 years if I...
Working Capital Management and Capital Budgeting are two functions of the financial manager. Explain which of...
Working Capital Management and Capital Budgeting are two functions of the financial manager. Explain which of these two functions you believe is most important for the financial manager of a small business. (minimum 200 words)
(a) Explain the following bank management activities: liquidity management, asset management, liquidity management, capital adequacy management,...
(a) Explain the following bank management activities: liquidity management, asset management, liquidity management, capital adequacy management, credit risk management, interest-rate risk management.         Consider the Loan Shark Bank (LSB) with the balance sheet shown below, which is subject to a 10 percent required reserves ratio. Use this information to answer parts (b) and (c). Assets Liabilities Reserves                       $20 Deposits                                  $100 Loans                            $80 Loans from Comm. Banks $ 10 Securities                      $30 Loans from the Fed                 $ 10 Bank Capital                            $ 10 (b)...
(a) Explain the following bank management activities: liquidity management, asset management, liquidity management, capital adequacy management,...
(a) Explain the following bank management activities: liquidity management, asset management, liquidity management, capital adequacy management, credit risk management, interest-rate risk management.         Consider the Loan Shark Bank (LSB) with the balance sheet shown below, which is subject to a 10 percent required reserves ratio. Use this information to answer parts (b) and (c). Assets Liabilities Reserves                       $20 Deposits                                  $100 Loans                            $80 Loans from Comm. Banks $ 10 Securities                      $30 Loans from the Fed                 $ 10 Bank Capital                            $ 10 (b)...
Larry Corp. purchased a capital asset for $184,000 in early 2013. Management estimated that the asset...
Larry Corp. purchased a capital asset for $184,000 in early 2013. Management estimated that the asset would have a 10-year life with an estimated residual value of $37,000 and would be depreciated on a straight-line basis with a full year’s depreciation in the year of purchase. In 2015, management decides to change the depreciation method to 10% declining balance. This is a change in policy because the change is motivated by a desire to conform to industry practice. The tax...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT