Who is a more senior creditor, a bondholder or stockholder?

Correct Answer: EBITDA stands for earnings before interest, taxes, depreciation, and amortization EBITDA came into wide use among private capital firms, wanting to calculate what they should pay for a business

Correct Answer: Internal Rate of Return is that rate of Return at which the net present value is equal to Zero or it is the Rate which equates the present value of the cash inflows to the cash outflows NPV = Cash Inflow - Cash outflow NPV = Zero

Correct Answer: Bull market is that market where stock value are expected rise and people will have tendency to sell their stock so as to earn profit out of it Thus sudden push from the suppliers will gradually niutalise the market

Correct Answer: When a company or corporation earns a profit or surplus, that money can be put to two uses it can either be re-invested in the business called retained earnings or it can be paid to the shareholders as a dividends

Correct Answer: Crossover rates have to do with the amount of earnings that are generated by two different but similar projects The crossover rate is the point at which the two projects achieve the same net present value In terms of investments, calculating a crossover rate between two similar securities can help an investor determine what to buy and what to sell

Correct Answer: The primary reason to issue stock is to raise money to start and maintain an ongoing business Other Reasons:: The reasons that a company might want to raise money by issuing stock are: To develop new products To buy more advanced equipment To pay for new buildings and inventories To hire more employees To provide for a merger or acquisition To decrease debt To give company owners greater flexibility To place a value on the company

Correct Answer: All the above

Explanation:

Capitalism is an economic system followed by a country or a society which is characterized by Privately owned businesses, a market economy and profits.

Capitalism is defined as "production for exchange" driven by the desire for personal accumulation of money receipts in such exchanges, mediated by free markets. The markets themselves are driven by the needs and wants of consumers and those of society as a whole in the form of the bourgeois state.

Correct Answer: Personal financial planning is the process of creating and achieving financial goals

Explanation:

Personal financial planning is the process of creating and achieving financial goals.

 

True statements regarding personal financial planning:

As we age, the number and complexity of the financial decisions that we make increases.

There are two means for achieving financial goals?you either need to increase your savings or reduce spending.

A family's resources are limited.

Correct Answer: CD's

Explanation:

CDs are the least risky investment choice when compared to flipping, renting and bonds.

A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment. CDs are generally issued by commercial banks.

CDs are issued by the bank and are guaranteed by the government. So even if the bank goes bankrupt the investor's money is guaranteed to a certain extent.

Flipping and renting are subjected to market fluctuations while bonds are not insured.

 

Correct Answer: Debit cards

Explanation:

There are two payment types that will help you stick to your budget.

1. Cash
2. Debit Card

The amount in the debit card is the only amount you can spend to stay within budget.

These method work because once you spend your money, you are done. You don?t have anything else to spend.

 

Credit cards, payday loans, and cash advances are all loans on future income. When you use a credit card, there is always just a little bit more you can spend. These types do not help you budget properly. In fact, these types encourage you to spend beyond your means and be out of budget.