. Time-series analysis is most closely associated with a. Intracompany comparisons b. Cross-sectional analysis c. Intercompany comparisons d. Common-size analysis

Q: What are the reasons for preparing horizontal and vertical analysis ?

A: Vertical and horizontal analysis of financial statements is part of financial statement analysis.…

Q: How to compare and contrast probable and estimable contingencies vs. remote contingencies.

A: Contingencies: Contingencies are the incidences   which may  or may not happen  and it depend  on…

Q: Describe the three-step process for estimating WACC.

A:

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: Explain the following concepts? a. Off-sheet analysis. b. Horizontal analysis. c. Vertical analysis.…

A: a. Off-sheet analysis: The analysis of the off balance sheet items, the assets and loans which are…

Q: Define target distribution ratio

A: Distribution ratio: Distribution ratio is defined as the proportion of the diverse constituents in…

Q: List and briefly explain the  quantitative and qualitative  factors consider for ratio  analysis

A: Ratio analysis is a quantitative method of observing a company's liquidity, operational efficiency,…

Q: Create a sample problem of an External Rate of Return.

A: External rate of return(ERR) It is the the rate of return  on a venture where any "excess” cash  is…

Q: Define coefficient of variation (CV)

A: Coefficient of variation: The coefficient of variation is considered as a statistical measure that…

Q: Describe in words how an NPV profile is constructed. How are the intercepts of theX- and Y-axes…

A: NPV profile: NPV profile of an investment is a diagram of the net present value of the project…

Q: Identify four ratios or other analytical tools used to evaluateprofitability. Explain briefly how…

A: Definition:

Q: What is meant by volatility clustering? Briefly describe two models that areused to describe data…

A: When the large changes in financial asset prices are bundled together that further leads to results…

Q: Identify major analytic ratios and describe their calculation

A: Accounting ratios are used by the company in checking the profitability, solvency, credit worthiness…

Q: Explain the reasoning underlying the name of the weighted-average method.

A: The reason in underlying the name of the weighted average method is explained as below,

Q: Identify one use of a multiple linear regression equation.

A: Regression Equation:   A regression equation is a form of algebraic expression consisting of…

Q: How can the quick ratio be determined with the given information?

A: Quick Ratio: Quick ratio is a liquidity ratio calculated for the purpose of evaluating the liquidity…

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: Compare and contrast probable and estimable contingencies versus remote contingencies.

A: The question is related to the probable and estimable contingencies and remote contingencies.

Q: Describe techniques of comparative analysis.

A: Comparative analysis of a financial statement helps the potential investors and stakeholders to…

Q: coefficient of correlation is used to obtain what?

A: The correlation coefficient could be a measurable degree of the quality of the connection between…

Q: If you wanted to evaluate a firm’s DSO, with what could you compare it?

A: DSO is the number of days that firms take to convert their account receivables into cash.

Q: Do equivalence calculations require a common time basis for comparison?

A: Answer: The calculation of equivalence method is used where duration of the projects is not equal.…

Q: Describe the Incremental B/C-Ratio Analysis?

A: Benefit cost analysis: Benefit cost analysis refers to analyzing the desirability of project where…

Q: Construct a sample problem of External Rate of Return (ERR).

A: External rate of return (ERR) or Internal rate of return (IRR) is the rate at which Present Value of…

Q: given information, which of the following shows the Current Ratio (CR) correctly?

A: Formula: Current Ratio= Current AssetsCurrent liability

Q: What was the correlation between both return series?

A: Answer: Introduction: A linear correlation measure between two variables that is, An independent of…

Q: Define solvency ratios.

A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…

Q: What factors should be considered in selecting a base to be used in computing the…

A: Definition: Pre-determined overhead rate: Pre-determined overhead rate is the indirect cost obtained…

Q: Describe the two basic differences between the weighted average and the FIFO method.

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: The second term for Horizontal Analysis is a. Dynamic Analysis b. Structural analysis c.…

A: Horizontal analysis: Horizontal analysis is a technique of comparing financial information of one…

Q: 1. Describe the difference benchmarks that can be used for ratio analysis.

A: Ratio analysis: It is the method of evaluation of the current financial condition of the company…

Q: The FIFO method provides a major advantage over the weighted-average method in that______?

A: The FIFO method provides measurements of work done during the current period .

Q: Define Profi tability ratios

A: A ratio is a tool used by management to analyze the effectiveness of various financial statements.…

Q: The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b.…

A: The correlation coefficient is a statistical measure.

Q: Which type of chart would be best for representing the correlation between two ilems!

A: Answer

Q: Define time-series analysis

A: Time series analysis is an important technique used in statistics in finance. It has been defined in…