FIN 3010 quiz Financial Modelling Answers

Please provide type solution fast i will rate for sure

Is there a reason to pick one over the other? Which formula would apply to a certain company or scenario? 1. FCFF=CFO +Int (1-Tax rate) - FCInv 2. FCFF=NI + NCC + Int (1-Tax rate)-FCInv-WCInv 3. FCFF=EBIT (1-Tax rate) + Dep - FCInv -WCInv 4. FCFF=EBITDA (1-Tax Rate) + Dep (tax rate) - FCInv - WCInv

HI. PLease help me with this one. You may use excel if you want. Thank you! :)

A firm's market-to-book ratio might be greater than 1.0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is   a. straight-line methods of depreciation.     b. using LIFO versus FIFO for inventory.     c. level 1 fair values.     d. off-balance-sheet assets arising from investments in successful research and development programs that are expensed according to conservative accounting principles.

EBITDA is one indicator of a firm's financial performance and is used as aproxy for the earning potential of a firm.1) Explain why EBITDA can be used to analyze and compare profitability amongfirms in different industries and even in different countries. 2) Explain what is the EV multiple. And then explain why it is analogous to thepayback period in finance or managerial accounting

Please see the attached graph for questions below. What is the difference between the two companies on this ratio? What is a plausible explanation as to why they would differ? Is one company clearly different than the other? Are there economic or end-market influences that explain why the ratios differ? What might they be? Over time, is each company’s overall financial performance improving, declining, or is something strange going on? Do you think evaluating financial statements is a good idea? What do you regard as some of the shortcomings of financial ratio analysis?

When converting dollar amounts on our financial statements to percentages for vertical analysis, what is it that makes this an easier way to compare companies to each other? A It provides a way for outside stakeholders to understand the numbers better in an easier format B It forces us to look closer at our financial statements to ensure we don't have missing amounts C It allows us to compare things based on growth or decline easier than comparing dollar amounts that could be vastly different values D It allows the analysis of numbers too large to comprehend by most stakeholders

TRUE OR FALSE Horizontal analysis is possible for both an income statement and a statement of financial position. Financial analysis is primarily a matter of making relevant mechanical computations. It is possible that a decrease in gross profit rate may be offset by a decrease in expenses, thus resulting in an increase in net income. On a, common-size income statement, net income is given an equivalent of 100% Short-term creditors generally are more concerned with vertical analysis than with horizontal analysis. Percentage changes are usually computed by using the latest figure as a base. Industry standards tend to place the performance of a company in a more meaningful perspective. The peso amount of change during an accounting period for an item appearing in financial statements is less significant than the change measured as a percentage. An increase in sales volume generally is accompanied by a proportionate increase in net income. Common-size financial statements show peso…

Give typing answer with explanation and conclusion Which of the following is false? A) All else constant, if a firm can decrease its operating costs, then return on equity will decrease. B) Ratios that measure how efficiently a firm manages its assets and operations to generate net income are referred to as profitability ratios. C) The portion of net income that a firm reinvests in itself is called the retention ratio. D) If DJ's has total assets of $300,000, net fixed assets of $120,000, and the average daily operating costs of $3,000, then its value of the interval measure is 60 days.

A)Calculate the following ratios: • Return on Capital Employed (ROCE) • Current Ratio • Gearing Ratio • Price/Earnings (P/E) Ratio  B) Based on the above ratios explain, which company George H. and James W. should invest in and discuss the limitations of your analysis.

Company X is competing with company Y. These are their ratios:   x y Profit Margin .144 .172 ROA .066 .062 ROE .118 .154 Based on Profitability, which company is doing better when compared to the other?

Why is the income tax payable not the same as income tax expense?  Why is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? Briefly explain the concepts of temporary difference and permanent difference. Identify any permanent differences that company may have. What do you find interesting, confusing, surprising or difficult to understand about the treatment of taxin your firm’s financial statements? What new insights, if any, have you gained about how companiesaccount for income tax as a result of examining your firm’s tax expense in its accounts?

What would be a reason a company would want to understate income?A. to help nudge its stock price higherB. to lower its tax billC. to show an increase in overall profitsD. to increase investor confidence

Which of the following statements regarding the current ratio is true? a.The current ratio is more useful than working capital in making comparisons across companies. b.The current ratio is not useful in making comparisons with industry averages. c.Working capital is more useful than the current ratio in making comparisons across companies. d.All of these statements are true.