Where is Enterprise Value most important from a lending/credit/risk perspective? Where is Enterprise Value most important...

Where is Enterprise Value most important from a lending/credit/risk perspective?

Where is Enterprise Value most important from an investor perspective?

Expert Solution

Lenders are always looking for higher amount of security when they are lending loans to any business organisation,and they will be seeking higher enterprise valuation for the company as higher enterprise value will mean that the company have higher asset and higher security, so there is a higher possibility of recovery of their loan and hence it is important from the perspective of the lender.

An investor will look for long term capital appreciation and higher rate of return, so he would be seeking for higher enterprise value as higher enterprise value will mean that the company will be providing higher rate of return because it is having a better asset quality and better capital structure & growth so investor will look for higher rate of return through higher enterprise value.

jeff jeffy answered 2 years ago

Buying Motives refer to the most important facts from the customer’s perspective in making a purchase...

Buying Motives refer to the most important facts from the customer’s perspective in making a purchase decision. Buying motives motivate the buyer to make a purchase, and they may be rational or emotional or a combination of both. Rational Motives include economic issues such as quality, cost, service capabilities, and the strategic priorities of the prospect's company. Emotional Motives include fear, status, and ego-related feelings. Benefits, on the other hand, describe added value for the customer—the favorable outcome derived from...

Define credit risk? Name ad discuss at least 3 methods lending institution uses to reduce credit...

Define credit risk? Name ad discuss at least 3 methods lending institution uses to reduce credit risk associated with the loans that they grant to their borrowers

Banks manage Credit Risk as part of prudent lending policy, name and discuss each of the...

Banks manage Credit Risk as part of prudent lending policy, name and discuss each of the five main elements.

From an external investor's perspective, which is most important for determining a firm's overall financial health:...

From an external investor's perspective, which is most important for determining a firm's overall financial health: the firm's income statement, balance sheet, or cash flow statement? Justify with three reasons. Would your answer differ if you were an internal manager of the firm? Explain. 300 words minimum

Describe the biosocial perspective and explain what this perspective considers most important to understanding behavior. Include...

Describe the biosocial perspective and explain what this perspective considers most important to understanding behavior. Include a discussion of the gender ratio problem and explain why this is not a problem for biosocial theories of crime.

From The 5 C's of credit, identify the ways in which the recent US mortgage lending...

From The 5 C's of credit, identify the ways in which the recent US mortgage lending practices failed to follow the discipline of 5 C's of credit.

What distinguishes enterprise risk management from more traditional approaches to risk management?

From a policyholder perspective, the use of deductibles in insurance contracts is Risk avoidance. b. Risk...

From a policyholder perspective, the use of deductibles in insurance contracts is Risk avoidance. b. Risk retention. c. Risk control. d. Risk transfer.

Question 1. Discuss the important of credit risk analysis to a financial institution.

Question 1. Discuss the important of credit risk analysis to a financial institution.Question 2. Discuss the difference between book value accounting and market value accountingQuestion 3. Explain the role of financial instititutions in loan securitization issuance. Not less than 250 words.

Explain what distinguishes enterprise risk management from more traditional approaches to risk managament?

Question