w does current ratio and quick ratio relate to a firm's financial profitability? What should the %s look like for profitable or unprofitable

Q: profit of a firm if a debenture is issued at

A: A debenture is said to be issued at a premium  when the price charged is more than its nominal…

Q: Briefly explain the internal characteristics that influence the rate of return for a company.

A: The rate of return is the discount rate that is the minimum rate of return which should be achieved.…

Q: How is the wealth of a firm’s shareholders/owners measured by? Group of answer choices a)…

A: The objective of financial management is to maximize the wealth of shareholders, that is maximize…

Q: What does the price/earnings (P/E) ratio show? If one firm’s P/E ratio is lower thanthat of another…

A: Price-to-earnings ratio (P/E ratio): It is the proportion for the valuation of a stock calculating…

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: How would you relate information asymmetry to firm’s dividend policy?

A: Information asymmetry refers to when one party has extensive knowledge about a particular subject…

Q: The firm's equity multiplier measures: O a. the value of assets held per dollar of shareholder…

A: Equity multiplier is also referred to as leverage ratio or financial leverage and indicates that a…

Q: Explain the relationship between a company’s growth possibilities and its dividend policy

A: There is a systematic and tangible relationship between a company’s growth possibilities and its…

Q: 1. Dividend is a financing decision as well as distribution of earnings.  Do you agree with the…

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

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: What is the relationship of WACC to the market value of a company?

A: A company's capital structure is the specific mix of debt and equity it employs to fund its overall…

Q: What is the net income for this firm?

A: Net Income is revenue excluding all expenses of the firm

Q: Financial leverage: A. increases as the net working capital increases. B. is equal to the market…

A: Financial Leverage refers to making a firm levered by increasing firm's exposure with debt capital.…

Q: If the financial markets are competitive and complete, which ones of the following goals of a firm…

A: Goal of a firm is always to maximize shareholder's' wealth

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: Discuss the critical issues involve in implementing the “Dividend Growth Model Approach” and the…

A: Critical issue with “Dividend Growth Model Approach” Dividend Growth Model is used to value a…

Q: analyze

A: Profitability analysis refers to allocation of expenses & analyzing the profits or earnings 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: Question :- Can the financial health of a firm be based off of one ratio? Why or why not? How do you…

A:

Q: When a firm earns its profits, management would usually decide to use the earnings for future…

A: The term profit or net income of a company refers to the revenue that is left after adjusting for…

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: What factors contribute to the business risk of a company? What is financial risk? How do the…

A: Financial risk relates to how a company uses its financial leverage and manages its debt load.…

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: investment growth

A: Stock price refers to the price at which a stock is trading in the market. It is the value that…

Q: How a firm splits its income between retained earnings and dividends does not affects its rate of…

A: Income is the revenue earned by the company after the charge of all the associated expenses. A…

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: Why is the WACC (weighted average cost of capital) important? When is it useful to a company?

A: Weighted average cost of capital is important to determine the minimum required return of all the…

Q: What are the issues involve in implementing the divident growth model approach and the security…

A: The dividend growth model is used to valuate a publicly held business that distributes its earnings…

Q: nefits do c

A: Corporate stakeholders : In simple words, corporate stakeholders refers to those individuals or…

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: How do we use debt to equity ratio to evaluate business performance?

A: debt to equity ratio is a ratio used to measure the solvency of a business . Debt to equity ratio is…

Q: What value due financial ratios offer investors in reviewing the financial performance of firms?

A: A ratio is an arithmetical relationship between two different figures. Financial ratio analysis is a…

Q: What factors fo firms consider in establishing dividend policy? Briefly describe each of them

A: Required  What factors fo firms consider in establishing dividend policy? Briefly describe each of…