A reduction in the advertising expense ratio increases both a firm's ROE and its share value. True or False ??

Q: Which of the following typically is true for profitability ratios? a. Growth stocks have lower price…

A: Profitability ratios are calculated to assess the company's ability to generate incomes relative to…

Q: Why is the cost of retained earnings cheaper than the cost of issuing new common stock? Group of…

A: Cost of retained earnings is the cost of financing through internal equity, where as cost of issuing…

Q: QUESTION 15 The Degree of Financial Leverage Formula calculates the impact of changes on Operating…

A: Q15. Financial leverage occurs when a firm begins to incorporate debt in its capital structure.  In…

Q: which of the following statements is false? O When a buyer values a target firm, the appropriate…

A: Going concern value is a value that expects that the organization will remain permanently in the…

Q: Which of the following are false? I) Managers are reluctant to make dividend changes that might have…

A: As per Lintner’s stylized facts, Managers are reluctant to make the dividend changes that might have…

Q: Is this situation consistent with a monopolistically competitive firm maximizing profit? If yes, is…

A: Market Economy- A market economy is an economic system in which market forces, rather than a central…

Q: The cost of retained earnings have the lowest weight in computation of the weighted average cost of…

A: correct answer is (a) The cost of retained earnings have the lowest weight in computation of the…

Q: If a company’s market price rises above the IPO price, does that suggest that the company left money…

A: An initial public offering refers to the new or fresh issue of stock to a group of investors.…

Q: Suppose a company increases the price of its product and demand hardly declines.which of the…

A: The increase in the price off the product where the demand hardly declines will lead to increase in…

Q: Explain what the significance of having a high/low Price-to-Book ratio means about the company's

A: Price/Book value is ratio of stock price in actual market and book value is value of share as books…

Q: In an oligopoly market, when firms choose to compete (rather than collude) their profits • usually…

A: Oligopoly Market : In oligopoly, There are few large sellers who occupy the major share in the…

Q: Pick two companies in the same industry.a. Determine their DOL, DFL, and DCL.b. What effect does a…

A: Let's take company X and company Y and the income statement of both the companies are given below:

Q: Explain how profits or losses can be magnified for a firm with high operating leverage as opposed to…

A: Operating Leverage: It is ratio to change in operating profit to change in revenue. Any change in…

Q: What would be a reason a company would want to understate income?A. to help nudge its stock price…

A: Profitability of the business is an important measure for business evaluation. It depends on the…

Q: Which of the following statements regarding the current ratio is true? a.The current ratio is more…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: What would be a reason a company would want to overstate income?A. to help nudge its stock price…

A: Income of the business is very important and useful measure of profitability of the business. More…

Q: Which of the following does NOT always increase a company’s MVA? Group of answer choices: Increasing…

A: Market Value Added (MVA) refers to the amount of wealth which the company is able to create for its…

Q: Can you identify a possible explanation for the company’s declining profits? If so, what is it?

A: Company's declining profits can be possible due to overhead expenses.  Overhead costs are the…

Q: Gross Profit Ratio for a firm remains same but the Net Profit Ratio is decreasing. The reason for…

A: Gross profit is given by sales revenue minus cost of goods sold. Gross profit =Sales revenue- cost…

Q: A downward adjustment in a firm's payout ratio means that the firm is reinvesting a : proportion of…

A: Retention ratio refers to those portions of net income of the company which is not paid by the…

Q: The market capitalisation of a brand as reflected by their share price on the stock exchange is…

A: The market capitalization of a firm is the entire current value of its equity. A corporation's…

Q: From a strategic management perspective, the primary reason a firm performs CVP analysis is to find…

A: CVP Analysis: CVP analysis is used to determined the how the changes in volume and costs effect the…

Q: Why is P/E Multiples Approach better than book value per share when it comes to valuing a company?

A: PE Approach:- The P/E ratio shows what the market will pay today for a stock in view of its past or…

Q: book value.”

A: Market value is the value that is determined by the forces that are external to the company such as…

Q: Does the successful investment decision increase a company's market value?

A: Meaning of Market Value of a Company The value of a company in connection with the financial markets…

Q: What is the principal problem involved in using a dividend valuation model to value companies whose…

A: The Dividend Discount Model (DDM) is a quantitative method of valuing a company's stock price that…

Q: What can you say about the market value of the company? is it positve or is negative?

A: In finance market value of a company is the worth of the company and the worth of the company is…

Q: Which of the following statements is INCORRECT?     Cutting the firm's dividend to increase…

A: Statement 3"A firm will increase its share price by reducing the total payout to shareholders." is…

Q: Because the cost of buying higher market share through acquisition may far exceed its revenue value,…

A: when a company buys a higher market share through acquisition there are a number of risk that a…

Q: which:     successful strategies will not be reflected in accounting profits for a number of…

A: There are activities whose usefulness or potential cannot be measured in terms of money and they…

Q: Which of the following statements is CORRECT? * A company can use its retained earnings without…

A: Optimal capital structure: The optimal capital structure can be simply defined as the combination of…

Q: Is this statement true or false? Give a reason for your answer. "The bird-in-hand theory suggests…

A: It indicates that the investors will generally prefer the stock dividends to expected capital gains…

Q: retention rate × return on new investment.

A: Retention Ratio: Retention ratio is the amount taken out as retained earnings. Retained earning are…

Q: The difference between the market value of the firm and the amount of laiabilities in the firm is…

A: Market value added is the difference between the market value of firm and the required value of…

Q: A firm with a substandard net profit margin can improve its return on total assets by O increasing…

A: The ratio analysis helps to analyse the financial statements of the business with assets and…

Q: Which one of the following statements is correct: O a. At periods of economic downturn, companies…

A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…

Q: What does the firm need to do to raise its ROE? Calculate the profit margin ratio of the company and…

A: A financial ratio is the ratio of various numbers in the balance sheet or balance sheet and income…

Q: Empirical evidence indicates that the returns to shareholders of the target firm vary significantly…

A: According to Empirical evidence, the shareholders of the taget firm have the advantage of earning…

Patient billing and collection

Patient billing and collection is a process where a medical charge will be imposed on the patient and the amount will be collected after considering co-pays, insurance deduction, and non-covered insurance. Billing and collection in the medical process is a vital process for the patient as well as the health organization. For a health organization, collecting medical charges is income for service provided by them to a patient. For a patient, medical billing is the expense for using the service provided by the health organization. For some patients, certain services will be covered under the insurance policy, and the remaining charges have to be paid out-of-pocket. The collection of such bills has to be clearly stated without creating a chaotic situation for patients and insurance providers. A billing statement will be easily collected for the uninsured patient as medical charges will be directly collected from them.