thod of income approach that consider the factor

Q: What is the dividend payout ratio and the dividend yield ratio?

A: Dividend payout ratio is the ratio between total dividends and the net income of a company. It helps…

Q: What is basic earnings per share (EPS)?

A: Introduction:- Basic earning per share denotes amount of net profit attributable to each common…

Q: What is the current dividend policy of Airtasker and why is this the case?

A: Dividends are the payments made by a corporation to its shareholders in return for the investment…

Q: Earnings per share can affect market prices of commonstock. Can market prices affect earnings per…

A:

Q: Which are more critical to the dividend decision, earnings or cash flow? Explain.

A: The dividend is the amount paid to the equity shareholders in return to the amount of investment in…

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: Are debtors calculated at selling price or finished goods price for net working capital? and why?

A: Net working capital means the difference between the current assets and current liabilities. Current…

Q: In comparison to free cash flow valuation, what's the main issue with dividend valuation?

A: Dividend discount model is a DCF model which assumes that the price of a stock should be equal to…

Q: List and compare all advantages and disadvantages of Payback Period Rule, Average Accounting Return,…

A: Payback rule: The Payback period is the length of time required to recover the initial cost of a…

Q: What is dividend payout ratio of AGA?

A: Dividend payout ratio is the percentage of dividend paid out of Net Income. It is computed as =…

Q: Use available information to forecast  incremental earnings what are the NWCs and ∆NWCs and forecast…

A: 0 1 2 3 4 5 1 COGS   -11000 -11000 -11000 -11000   2 OPENING STOCK 0 0 0 0…

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

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 inputs are required for the dividend growth approach?

A: Dividend: The dividend is the amount paid to buy the company to its shareholders out of its…

Q: What is the difference of Cost of Equity and the required rate of return on equities?

A: The amount of money that would be transferred to a company's shareholders if all of the company's…

Q: How can we calculate earnings per share?

A: Earnings per share means amount of net profit earned per each share of common stock. Investor…

Q: True or False Returns from the overall market can be thought of as a combination of three factors:…

A: The operating profit of a corporation is the entire earnings from its core business tasks for a…

Q: Define the following terms. Basic earnings per share. Potentially dilutive security. Diluted…

A: Basic earning per share is the amount of a company’s earnings allocable to each share of its common…

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: A measure of profitability analysis is a. times interest earned. b. cash flow per share.…

A: Evaluation of profitability: In general, financial ratios are used to evaluate capabilities,…

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: Define dividend yield

A: Introduction: Usually, dividend is nothing but a distribution of a portion of profits of the…

Q: Explain the fundamental equivalence of valuation based on expected future dividends free cash flows…

A: Introduction: The valuation for dividends, cash flows & earnings generally vary in their own…

Q: Which one of the following represents the capital gains yield as used in the dividend growth model?

A: The formula for the dividend growth model is: P0 = d1/(r-g) where d1 is the next expected dividend r…

Q: Whats is the sum of the expected dividend and the capital gains yield called

A: total yield = capital yield + dividend yield

Q: period

A: value of equity is the sum of present value of future dividend paid. Present value = Expected…

Q: What is difference between The earnings multiplier and Discounted cash flow model (DCF)? kindly…

A: Valuation is the process of determining fair value of an asset or a firm. There are various methods…

Q: Why is earnings per share called “the bottom line”? What is EBIT, or operatingincome?

A: Earnings per share is the company’s net revenue/income that can be distributed among its…

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: REQUIRED: ANSWER THE FOLLOWING QUESTIONS IN POINT FORM • What is the difference between book value…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Define cost of equity? How does it relate to the ‘required rate of return’ (r) on equities?

A: Definition of Cost Equity: Cost of equity is the return that a company requires for an investment or…

Q: How does the accounting for a dividend received differ between the cost method and the equity…

A: Equity investment: Equity investments are stock instruments which claim ownership in the investee…

Q: How is the income based valuation model important in the business? Discuss sub topics such as…

A: Income Based Valuation Approach esteem a business dependent on the past, current, or expected future…

Q: Cost of equity can be calculated using the SML approach or the dividend discount models. True or…

A: Cost of equity is the return that the company pays to its shareholders in exchange for providing the…

Q: Forward P/E = Market capitalization/ forecasted income

A: There are two types of P/E ratios 1) Trailing P/E ratio 2) Forward P/E ratio   Trailing P/E ratio…

Q: How are financing costs and dividends considered in Scenario Analysis?

A: Net present value (NPV) is computed by subtracting present value of cash outflows from the present…

Q: The two main approaches to equity analysis are the relative valuation models and… a. The discounted…

A: Stock valuation is very useful to ascertain whether the stock is trading at premium or discount.…

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: What is the financial meaning of each parameters and variables of the Arbitrage Pricing Theory model

A: The question is based on the concept of Arbitrage Pricing Theory mode (APT). APT is consider  a…

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: What is a “dividend return” and a “capital gain,” and how do these terms enterthe arbitrage equation…

A: The Arbitrage pricing equation is  E(Ri) = E(Rf) +Beta * [E(I)-E(Rf)] E(Ri) is the return on the…

Q: What are the impotance of Earning per Share and Diluted Earnings per Share in making economic…

A: Diluted EPS= Net Income−Preferred DividendsWASO+CDS​ where: EPS=Earnings per share WASO=Weighted…

Q: Liquidity. The net profit / sales percentage measures which of the following? O Return on…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…