profit of a firm if a debenture is issued at

Q: The comparison of a company's financlal condition and performance across time is known as: Multiple…

A: The financial position of the organization is defined as the current balances of its reported…

Q: Differentiate the tax effects of financing a company with stocks and debts. Your answer should…

A: Stock are have high cost because expectations of shareholders are very high and also there is no tax…

Q: fers to the firm’s decision on what to do with its

A: Step 1   Companies use profit management to adjust profit volatility and present a fixed profit…

Q: Explain, with examples, why accruals reverse overstate the firm's profit.

A: Aggressive accounting is related to the practice of accounting which is designed in order to…

Q: What is the importance of a pro forma income statement to a firm?

A: Pro forma is referred as the sake of form. It is used to represent the information in a formal…

Q: write Advantages and Disadvantages of. Residual Dividend Model by an organization.

A: Residual dividend policy is the policy in which the earnings of the company are first used for the…

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: Earnings can be paid out in dividends or retained by the firm to finance ongoing productive…

A: Earnings are the profits remaining after payments of taxes. This profit will form part of common…

Q: how can a company can raise capital through the issuance of equities?Include the advantages and…

A: Equity Capital is a means of financing with the help of ownership capital. Equity capital can be…

Q: Price-to-book value ratios are most appropriate for measuring the relative value of: A a bank. B a…

A: Price to Book Value:- Price to book value ratio is very important ratio when we are finding an…

Q: How can we n determine the net income (profits) of the firm mainly for the operating activities?

A: Statement of cash flows: It is one of the financial statements that show the cash and cash…

Q: Show the relationship between the cost of capital and the intrinsic value of a firm.

A: Hi There, Thanks for the posting the question. Per Q&A honor code, The solution for the first…

Q: Analyze the following statement with a suitable example:  “The current cost adjustment helps to…

A: Inflation seems to be the rate at which prices rise over a specific period of time. Inflation is…

Q: Explain the risk of investing in a company based on

A: Debt to equity ratio indicates that how much Debt is company have and how much company is having…

Q: Discuss the major methods of a company valuation. In doing so, explain each method and compare their…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Describe the two possible market signals that investors perceive from a firm announcing an increase…

A: Dividend refers to that portion of the profits of the company which is distributed among the…

Q: Compare the effect of distribution of dividends and retained earnings  on the value of the firm.

A: A dividend is a profit distribution made by a firm to its shareholders. When a company makes a…

Q: When the economic method is used, the investor will recognize the investment income when: Select…

A:

Q: Which one is more appropriate for cost of retained earning? A. Weighted Average cost of capital…

A: Retained earnings are the part of net income that is not distributed to the shareholders in form of…

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: Discuss how Floating and Fixed debentures affects the profitability of a business?

A: In floating debentures the interest rate of such debentures change will the level of changes... Such…

Q: Which one of the following is minimized when the value of the firm is maximized? A- WACC B- Return…

A: To maximize the value of the firm, it is important to have a fair cash flow for the firm. Value of…

Q: Dividend is a financing decision as well as distribution of earnings.  Do you agree with the…

A: Dividend is the distribution of the company’s earnings to the shareholders of the company. A…

Q: book value.”

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

Q: Question :- Can the financial health of a firm be based off of one ratio? Why or why not? How do you…

A:

Q: Which of the following statements is true about the values recorded in the balance sheet of a firm?…

A: Debt is considered as the creditor of the firm and the firm has to pay interest at a pre-fixed rate.

Q: Briefly describe the external characteristics that influence the rate of return for a company.

A: The rate of return for a company is the net gain or loss a project generates over the period of…

Q: The most important factor to consider when determining the dividends to be declared is a. the…

A: When a company has more cash than it can use(Profit in hand and no further expansion plan to grow),…

Q: How does Net Proft Margin, ROA, and ROE determine a firm's financial profitability?

A: Financial profitability refers to that financial situation of a company in which its revenues are…

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: How do a company’s investment opportunities, capital structure,and working capital policies affect…

A: Shareholders are the subscribers of the firm’s capital. They are the owners of the company. A…

Q: Which ratio measures the overall return on the firm's assets including financial leverage and taxes?…

A: In finance we use different financial ratios to determine the financial health and condition of a…

Q: An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on…

A: Income statement summarizes the revenues, costs and expenses incurred during a specific period of…

Q: What are the real-world factors that would encourage firms to follow a high dividend policy

A: Dividend is the amount of share which the shareholders receive out of the remaining net profits. It…

Q: Compare Dividend Valuation Model with Capital Asset Pricing Model in the context of calculating cost…

A: The dividend discount model and the capital asset pricing model are two methods for estimating cost…

Q: Which one of the following will decrease the net working capital of a firm? Assume the current ratio…

A: Net working capital is calculated as difference of current assets and current liabilities

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: What is the calculation for 'Profit Margin' for the firm in that picture?

A: Information Provided: 2015 net profit = 39,878 2015 Revenue = 100,000   2016 net profit = 11,527…

Q: O c.Dividend Decision

A: In simple words, whenever a company makes any profit, it has two choices either to distribute them…

Q: often defined as maximizing the va

A: Solution Concept The main objective of business               The business is carried out with a…

Q: What comment can be made on this or what can be added? The Weighted Average Cost of Capital (WACC)…

A: WACC or the weighted average cost of capital is a very important financial metric. My comment can be…