What is meant by the margin of safety?

Q: any's margin of safety as a percentage of i

A: When the market price of a security is significantly below your estimation of its intrinsic value,…

Q: What is the carryover ratio? What parameters of the base does its value depend on?

A: Carryover Ratio The purpose of measuring the carryover ratio  is to determine the ratio which are…

Q: Describe the margin of safety.

A:

Q: What is directional test?

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: Define stand-alone risk

A: Stand-alone risk:This refers to the risk linked with a single aspect of a firm or any particular…

Q: What is the margin of safety? What are the three ways it can be expressed?

A: Margin of safety refers to the extent by which the actual or the projected sales of an organization…

Q: What exactly are ESOPs? What are some of its benefits and drawbacks?

A: Introduction: ESOP: Employee stock ownership plan is retirement plans for employees of the company…

Q: What are value drivers?

A: Answer: The basic determinants of the cash flows of a project or primary factors in project…

Q: Why is the variance (or standard deviation) used as a measure of risk? What are the advantages and…

A: Reasons of utilizing variance as a risk measure: While consider a lesser risk in investment, fewer…

Q: Explain Contraction risk?

A: Contraction risk may be a hazard that the backer of fixed-revenue securities faces. This hazard…

Q: What is performance testing and what are its bottlenecks?

A: It examines financial records, individual transactions, and the processes involved in obtaining and…

Q: What is a key performance indicator?

A: Key Performance Indicator: Key performance indicator is the measurement metric used to evaluate the…

Q: What are the benefits of netting?

A: Answer Defination:- Netting is a process by which an exposure or obligation is reduced by combining…

Q: what is differrance between effectiveness an Efficiency

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Q: What is the meaning of margin of safety?

A:

Q: How efficient is an High-low method technique?

A: Using high low method, different types of costs can be separated.

Q: Describe Inherent Risk.

A: Definition:   Audit Planning: Audit planning is the first step in the auditing process. The auditor…

Q: cost of equipment?

A: Purchase term 2/10, n/30 means 2% discount is available for payment within 10 days, the credit…

Q: What is the efficient frontier?

A: The term efficient frontier is used in relation to professor Harry Markowitz's Modern Portfolio…

Q: What does the Equipment Replacement decision involve?

A:

Q: What is risk and give examples

A: While making investment decisions risk and return should be taken into consideration.

Q: Define control risk and detection risk. What is the difference between control risk and detection…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: How is benchmarking beneficial?

A: Benchmarking is a measure which determines a company's competitive position through comparing its…

Q: Archer's margin of safety percentage (MoS %) %.

A:

Q: What is the equipment replacement?

A: Under replacement, one is focused with equipment and machinery that worsens with the passage of…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

A: ESOP: Employee stock ownership plan is retirement plans for employees of the company wherein the…

Q: controllable margin

A: Controllable margin = Contribution margin - Controllable fixed costs

Q: Explain an example how to calculate margin of safety.

A: The margin of Safety: The break-even point reflects the level of sales volume where no profit or…

Q: Describe the potential costs and benefits of LBOs?

A: LBO is the acquisition method where the company used to use the borrowed money in order to acquire…

Q: What are favorable direct materials? Give an example?

A:

Q: How can spooling present an added exposure?

A:

Q: Define the term margin of safety.

A: Definition: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship…

Q: How does conformance quality differ from design quality? Explain.

A: Total quality management: Total quality management is a method that eliminates wasteful activities…

Q: What is the maximum loss protective put? R

A: Put option: This option holder will have right to sell a stock, but it is not an obligation to sell…

Q: Explain relationship between the client’s performance measurement system and client’s inherent risk.

A: Auditing is a process of inspecting the financial accounts of a company in order to determine the…

Q: what is the break-even point and margin of safety ?

A: Break-even point In accounting language Break-even point means the total turnover of the company is…

Q: what is the risk-free rate (rf)?

A: Risk free rate is also called as treasury bill rate. This treasury bill rates are free from default…

Q: Define Pretax margin

A: The pretax margin is a ratio to evaluate the operational efficiency of a firm. It measures the…