Earnings per share can affect market prices of commonstock. Can market prices affect earnings per share? Explain.

Q: What is market value ratio?

A: Ratio is the relation between two different quantities obtained after dividing one by another.

Q: Why are the following “effects” considered efficient market anomalies? Are there rational…

A: Portfolios of low price-earning (PIE) ratio have been shown to provide higher returns than high PIE…

Q: why is the difference between a stock's current market price and its intrinsic value important to a…

A: Stock's current market price: The current stock price of a company is a price that an investor is…

Q: What is the difference between the ratios that use the market price and the other ratios? Why might…

A: Ratio analysis mistreatment money statements includes accounting, securities market, and management…

Q: What are the factors favoring a high-dividend policy?

A: Dividend refers to portion of net earnings of the company that is shared with common stock holders…

Q: What is market/book (M/B) ratio?

A: Introduction: Market value is nothing but the value derived when the stock price is multiplied by…

Q: What does it mean for markets to be efficient? What are the differences in the degree of efficiency,…

A: The markets are considered to be efficient if the information related to various aspects that create…

Q: Describe the Market-Value Analysis?

A: Market Value is a solid indicator of investor or shareholder capital. All things considered, what…

Q: What is the internal price index? What is the dollar-value LIFO inventory?

A: LIFO is the Last in first out inventory method in which inventory purchased last will be sold first.…

Q: What are the consideration that need for dividend pay out policy?

A: The dividend is referred to as the share of profits, which used to be distributed to the company's…

Q: What is the price volatility component of daily earnings at risk?

A: The acronym DEAR stands for Daily-earnings at risk. To understand the price volatility component,…

Q: Why are secondary market prices relevant for a firm

A: Secondary market can be defined as the market where securities which have been already issued in the…

Q: What is earning per share? Explain its significance.

A: Earnings per share:  Earnings per share represent the amount of income earned per share of…

Q: What is market value ratios?

A: Introduction: Market value ratios help to assess the economic position of publicly dealt…

Q: So if the Return = (Total Dividend + change in market price ) / purchase Price, then why is the…

A: The total return is the actual rate of return on an investment or pool of investments during a…

Q: Explain Market Analysis?

A: Market value is a strong shareholder richness measuring stick. And besides, what depends is what the…

Q: What is the market economy?How dothe financial marketsinteractwith product and labor markets to…

A: The Market economy is an economy model in which all the decision regarding the demand and supply of…

Q: what are the sssumptions about market efficiency?

A: The theory that states that all the information available in the capital market is reflected in the…

Q: What is the importance of knowing the value of the preference share using the zero-growth model?

A: Zero Growth Model: Zero Growth Model is a Valuation Model for valuation of securities which provide…

Q: = market value per share

A: When an entity declares stock dividend the entity does not get any cash inflow. However the value of…

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: Explain how to use the free cash flow valuation model to find the price per share of common equity

A: Free cash flow to the firm is the cash flow available to the company’s suppliers of capital after…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

Q: What is the clientele effect, and how does it affect dividend policy irrelevance

A: Answer: Clientele effect: Clientele effect refers to companies which make customer-based dividend…

Q: How is book value per share calculated? Explain why book valuesoften deviate from market values.

A: Book value per share is overall value of company’s assets on its balance sheet. It means the value…

Q: Explain a flat yield curve using the segmented market theory.

A: Mаrket  segmentаtiоn  theоry  is  а  theоry  thаt  lоng  аnd  shоrt-term  interest  rаtes  аre  nоt…

Q: What is market efficiency?

A: Market Efficiency term is taken from a paper written by Eugena Fama in 18970. Fama acknowledges that…

Q: How does a company determine the interest rate it uses in making a netpresent value (NPV) decision?

A: The net worth of the project after the deduction of the current worth of the cash outflows from the…

Q: what are the assumptions about market efficiency ?

A: Market efficiency refers to the market situation where stock prices reflect all available &…

Q: Determine what form of the theory of efficient market is being described in each item. Write W for…

A: IT is  a semi-strong form of  efficiency.

Q: How is book value per share calculated? Explain how inflation and R&D programsmight cause book…

A: Book value per share:   A book value per share takes into consideration the ratio of the common…

Q: Explain the significant of capital money and commodity market and it's difference.

A: Money market is the market in which the securities who is high liquidated in nature is traded. It…

Q: inverted

A: An inverted yield curve is a curve which shows that the company's long term debt instruments have a…

Q: What is market Value added? What is economic value added? What is the difference between what each…

A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…

Q: What are the TRIN Statistics and Cofidence Index and what do their values describe about the bullish…

A: The Trading Index is also known as Arms index. The name Arm’s index is decided on the name of the…

Q: Explain how to estimate the price per share using the free cashflow valuation model.

A: Free cash flow valuation model is the one in which company’s cash flows that are expected to occur…

Q: Is there a better choice between the book value per share or the price-earnings multiple approaches?

A: Book value per share is valuation model which is purely based on the book value of assets and…

Q: for Market Price per S

A: Step 1 The market price or market capitalization of a company is calculated using the market price…

Q: end pricing model and why is it i

A: Step 1 The dividend discount policy is a quantitative method used to predict a company's stock price…

Q: Compare and contrast the Spot market versus the Future market give examples

A: Spot market is the market where exchange and settlement of the transaction is immediate. examples of…

Q: which between the two is better for you, the Book Value per Share approach or the P/E (Price…

A: Book value per share approach and Price Earnings (P/E) approach are useful techniques to evaluate…

Q: What is the Profitability Index?

A: Capital budgeting is the technique of evaluating a project which requires an initial capital…

Q: In computing the WACC, what is the difference between using the current market value weights rather…

A: WACC A computation of an entity’s cost of capital in which every capital’s category is apportioned…