Explain the reasons why risk management might increase the value of a corporation?

Q: Discuss ways in which shareholders of a company can encourage its managers to act in a way which is…

A: SHAREHOLDER WEALTH Shareholder Wealth…

Q: Explain the important implications which investors and corporate managers wishing to use the…

A: Investments are the money or funds invested by the investors in some financial instrument in the…

Q: Suppose you need additional capital to expand,and you sell some stock to outside investors. If…

A: As the proprietor or manager, since the corporation, the advantage from augmented wealth, but also…

Q: What types of risks should shareholder wealth-maximizing managers seek to offset in a firm they are…

A: Explanation:- The principle of maximizing shareholder value (SWM) states that the goal of every…

Q: One of the key risk areas that corporates need to manage is "ethical risks." Do you think that…

A: Ethical risk: It is the negative unexpected  impact of unethical actions.

Q: managers speak as if the corporation has other goals. For example, they may say that their job is to…

A: Shareholder wealth maximization is the goal to maximize the market value of the firm and thus…

Q: Why is corporate finance important to stakeholders?

A: Corporate finance generally deals with the sources of funding i.e the entity's capital structure. It…

Q: The key strengths of the public corporation is/are their capacity to allow efficient risk sharing…

A: The key strengths of the public corporation are: their capacity to allow efficient risk-sharing…

Q: Critically evaluate the influence of activism by institutional investors on corporate governance.

A: Institutional investor refers to the company that invests money in shares and financial assets on…

Q: Why it is important for organization to have  a corporate portfolio analysis?

A: Corporate Portfolio Analysis, is the study of some specific portfolio to assess its performance,…

Q: Why would it be desirable to switch from an S corporation to C corporation once the business is…

A: S Corporation: it is the special tax status which is assigned to small corporations. S corporation…

Q: Explain the principle of increasing financial risk and why it is important when assessing the…

A: Financial risk refers the risk that the organization may not be able to repay its loan. This may…

Q: 1. What is the role of digital analytics in the long term to increase shareholder wealth? What are…

A: The company made analysis through websites and publicly available apps regarding the activities of…

Q: how would you apply the concept of risk and return in your daily decision-making processes? How…

A: Risk refers to the possibilities of variable returns associated with an investment. The expected…

Q: investment

A: solution. how to acquire and employ or invest funds

Q: Sumarise the advantages and dis advantages of corporation which features contribute to the dominance…

A: Corporation is form of organization under which the owners are carrying separate entity from the…

Q: Please explain why prudent financial management will maximize Shareholders’ wealth, in the following…

A: Financial management is a function in the business that is dealing with financial resources…

Q: Explain how a financial manager can, in practice, maximize the wealth of shareholders.

A: Answer

Q: what are the goals of financial management for a corporation

A: Financial management means planning, organizing, directing, and managing a company's financial…

Q: What are the key elements of a corporation’s strategic plan? How is the financial plan related to…

A: Corporate strategy is arguably the most essential and broad ranging strategy level within…

Q: When valuing private companies, we use public companies as comparables to gain insights into how the…

A: Valuation of private companies is not easy simply because of the fact that limited information are…

Q: In theory, should a firm be equally concerned with stand-alone,corporate, and market risk? Would…

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: What factors contribute to the business risk of a company? What is financial risk? How do the…

A: Financial risk relates to how a company uses its financial leverage and manages its debt load.…

Q: What is the important question of corporate finance when a finance manager advises the company’s…

A: Hi, since you have asked two different question. We will answer the first one as per the authoring…

Q: What are the risks in the corporation Equinix?

A: The ERM (Enterprise Risk Management) programme at an Equinix corporation is actually designed to…

Q: The key strengths of the public corporation is/are (A) their capacity to allow efficient risk…

A: Public Corporation is that corporation which is owned by shareholders and have limited liability.…

Q: How does attracting equity capital easier for a corporation?

A: Equity Capital Financing: It is a process of raising finances or capital by selling shares. When…

Q: What goals might be pursued by managers instead of maximization of shareholder wealth?

A: The shareholder wealth is the company revenue. The shareholder wealth is increased by increasing of…

Q: What are six reasons risk management mightincrease the value of a corporation?

A: Risk management will help in increasing the firm’s value because it helps in allowing the…

Q: What are the main implications of financial risk associated with the company?

A: There are various types for financial risk which are associated with the company such as: 1) Market…

Q: Explain an agency problem for a corporation with examples, and identify means by which the firm can…

A: An agency problem is a common problem existing in firms which arises when a conflict of interest…

Q: The key strengths of the public corporation is/are A. their capacity to allow efficient risk sharing…

A: Public corporation is referred as the corporation where a part of company’s assets and profits are…

Q: Discuss how financial risk management enables a firm to increase its value

A: The process of discovering, assessing, and controlling threats to an organization's capital and…

Q: Discuss the benefits of managing financial risks in a company?

A: Risk is the factor which arises from the uncertain future factors. It is always preferable to manage…

Q: Why is corporate governance important toinvestors? Explain how each of the following isrelated to…

A: Corporate governance is the system by which companies are directed and controlled. Boards of…

Q: What is the important question of corporate finance when a finance manager advises the company’s…

A: Capital Budgeting techniques are used to decide the investment project that should be selected.

Q: What should be the primary goal of a corporation?

A: Corporation: It refers to a large company considered as an individual entity and recognized in law.