Describe in brief the greatest difficulties faced in capital budgeting in the real world. ANSWER Difficulties faced in capital budgeting – Uncertainty of variables e.g annual cash flows, discounting rates, changes in technology, inflation rate, changes in tax rates etc. Read More …
Category: A CPA Financial Management Revision
CPA Financial Management Revision
(i) What is a Commercial Paper? (ii) State and explain the advantages of using commercial paper by businesses to raise funds
(i) What is a Commercial Paper? (ii) State and explain the advantages of using commercial paper by businesses to raise funds ANSWER (c) (i) A commercial paper is unsecured short term financial instrument issued at a discount by financially stable Read More …
(i) What is a stock exchange index? (ii) Outline four drawbacks of the Nairobi Stock Exchange index
(i) What is a stock exchange index? (ii) Outline four drawbacks of the Nairobi Stock Exchange index ANSWER (i) An index in general terms is a measure of relative change from one point in price to another. Stock indices measure Read More …
Explain how the Capital Authority can ensure: (i) Faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country (ii) Development of other stock exchanges in Kenya or in your country.
Explain how the Capital Authority can ensure: (i) Faster growth and development of the Nairobi Stock Exchange or Stock Exchange in your country (ii) Development of other stock exchanges in Kenya or in your country. ANSWER i) 1. Establishes Rules Read More …
What economic advantages are created by the existence of: (i) Primary markets (ii) Secondary markets (iii) Portfolio management firms
What economic advantages are created by the existence of: (i) Primary markets. (ii) Secondary markets (iii) Portfolio management firms. ANSWER i) Economic advantages are created by the existence of Primary Market • Raising Capital Business • mobilizing savings • Government Read More …