what determines the market value of a company are not profits, per se, but rather, cash flows?

Q: what determines the market value of a company?

A: Market esteem (otherwise called OMV, or "open market valuation") is the value a resource would get…

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: a. Sales Maximization b. Asset Maximization c. Profit Maximization d. Wealth Maximization

A: Time value of money is a technique used to find the worth of money today, but that money is to be…

Q: The financial leverage implications for company analysis?

A: 1. Financial Leverage: To finance the New Assets management borrowed money. it is called financial…

Q: How does current ratio and quick ratio relate to a firm's financial profitability?

A: Current ratio and quick ratio are indirectly related to a firm's financial profitability.

Q: Can a company be profitable but not liquid? Explain.

A: Liquidity: It can be defined as the ease or quickness with which the short term assets of a company…

Q: What are the main components of a company’scost of capital?

A: Cost of capital It is essential to come back to make a capital planning venture advantageous, for…

Q: A business can be valued by capitalizing its earnings stream. Does one measure make more sense than…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: What is capital structure of a company and explain why it is important?

A: The capital structure of a company and explain why is important will be explained:

Q: what is the relationship between management of business finance and company`s financial performance…

A: Managing Business Finance means to utilize the funds of the business out of various means such as…

Q: According to the bird-in-the-hand-theory, how do high dividends impact company value and why?

A: The dividend is the amount that is paid to the shareholders as the return on the shares after paying…

Q: Why might an analyst be interested in examining the earnings persistence of a company?

A: Earnings persistence can be defined as the continuity and longevity of the potential earnings, which…

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 are the limitations to using financial ratio analysis [such as profitability ratios, liquidity…

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

Q: . CALCULATE the value of the firms when dividends are not paid

A: Information Provided: Cap rate = 10% Outstanding Shares = 10,000 Price (P0) = $100 Dividend = $5 Net…

Q: What is the net income for this firm?

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

Q: How can a company’s operations generate a healthy profitand yet produce meager or even negative cash…

A:

Q: Explain how a company can be “profit rich, yet cash poor.”

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: What are the advantages/disadvantages of using the discounted cash flows method of estimating the…

A: Discounted cash flows method : Discounted cash flow method considers the time value of money in…

Q: Explain "frce cash flows. Why do managers like to retain free cash flows instead of distributing it…

A: Free cash flows : As the name suggests, free cash flows relates to the fund that are leftover to a…

Q: Which is more important to a company capital or O&M? Why?

A: Capital Expenditure Capital expenditure is one of the important  factors of the company.  It is the…

Q: What are the best two measures for the profitability of firms that are not publicly traded?

A: Profitability, rate of return, as well as the pre-tax income are all metrics that would be used to…

Q: The wealth maximization objective of a firm is superior to its profit maximization objectives.Do you…

A: The primary objective of every firm is to maximize its profit. Wealth maximization is the broader…

Q: What does capital structure of a company means?

A: Capital structure of a company is the proportion of various long term sources of finance used to…

Q: The business risk of a company is most accurately measured by the company's: a. Debt-to-equity…

A: Various risk is associated with business, some of them are controllable by the company while some…

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 are the advantages and disadvantages of a company raising capital through the issuance of…

A: Equity is the owner’s share of capital in the company.  Equity share capital is the owned capital.…

Q: What major advantage does a company that has positive free cash flow have over a  company that has…

A: Free cash flow : It is defined as a financial performance metric which shows how much funds are…

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: How can you tell of a company is profitable?

A: Profit. of a Company:After deducting all of the costs associated with running a business, the amount…

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: Why would a company’s return on total assets be different from its return on common stockholders’…

A: Equity: Each company needs finance to run the business. Equity is one of the method through which…

Q: How can the fundamental price of a firm contribute to the wealth maximization of a firm?

A: The fundamental price of a firm depends on its intrinsic value which is dependent on the present and…

Q: What is causing the volatility for this company? Is anything in this statement unusual or concerning…

A: when analysing the company financials it is important to consider the every variables as it affect…

Q: Is accrual accounting more closely related to a company’s goal of profitability or liquidity?

A: ACCRUAL CONCEPT - generally, the accrual concept recognizes revenue as and when it is accrued or…

Q: Is a company's dividend policy payment important? Please explain why or why not

A: Dividend:- dividend is distribution of profits by the company to its investors or shareholders,…

Q: How can the company, which is a profitable one, have insufficient cash flows? Explain your answer.

A: Quickclick Media Ltd. announces that their profits in the current year have increased over the…

Q: What is the capital structure of the company?

A: Here Is The Answer:

Q: Is a company's dividend policy important? Please explain why or why not

A: Dividend policy is concerned with financial policies that involve paying a cash payout now or paying…

Q: What is earnings quality? What are the possible topics or areas that the reported  earnings may not…

A: When you look at a company's earnings, you can see how good they are by ignoring any anomalies,…