What is the Baumol model, and how is it used?

Q: What is the difference between ER and REA model

A: ER model stands for Entity Relationship model which is a high-level data model. This model defines…

Q: What is the project’s PI?

A: The PI index the profitability index of the project. The shows the profitability of the project…

Q: What are the steps to figure this out?

A: Journal: Recording of a business transactions in a chronological order.

Q: What is Gordon model?

A: Intrinsic value of a stock is based on the internal information of an organization. That is, market…

Q: What is Glass-Steagall Act?

A: Glass-Steagall Act splits up the investment and commercial banking segments of an investment bank.

Q: What type of model is this showing?

A: Valuation models: There are three models that investors can employ to determine the intrinsic value…

Q: What assumptions underlie the EOQ model?

A: The model that helps in calculating the optimal amount of quantity needs to be purchase for…

Q: From where has the concept DU pont Analysis comes?what’s the formula?

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: What is the Black Scholes Model?

A: Black Scholes Model is an option pricing model.

Q: What is IFRS?

A: In accounting and financial reporting there is need of international rules and regulations to create…

Q: What is feasible set?

A: When investors manage their ‘financial assets’, like ‘bonds’, ‘shares’ and other financial…

Q: How do your answers in parts (a) and (b) relate to the theory of constraints? Explain.

A: Introduction:- Constraints theory used to identifying the most important limiting factor that…

Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: What is Miller model?

A: It represents the impact of individual taxes or personal taxes into the valuation of a levered firm,…

Q: What was the purpose of creating the EDGAR system?

A: Definition:   Electronic Data Gathering, Analysis, and Retrieval (EDGAR) are the electronic filing…

Q: Consider REMICs?

A: A real estate mortgage investment conduit (REMIC) is a difficult puddle of mortgage securities…

Q: What is the efficient frontier?

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

Q: suitable behavioral model?

A: Behavioral Model: Behavioral Model from its name only suggests the study of behavior. The study of…

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: What are the advantages and disadvantages of using MUS? Under what conditions is it best used?

A:

Q: Define Baumol model

A: The main usage of Baumol model is that it helps the firm in determining the cash balances under the…

Q: What is materiality? Explain?

A: Materiality: The accounting concept which focusses that all the financial items and figures which…

Q: What assumptions are inherent in the EOQ model as presentedhere?

A: Economic order quantity (EOQ): Economic ordering quantity (EOQ) is the perfect order quantity a…

Q: What is the value of Po?

A: Annuity is referred to a cash payment being made at regular intervals. It is a widely used concept…

Q: What are the answers

A: The answer is as fallows

Q: What are the Replacement-Analysis Fundamentals?

A: Replacement analysis refers to the process where an organization determines whether it is beneficial…

Q: Who were Modigliani and Miller (MM), and whatassumptions are embedded in the MM and Millermodels?

A: Introduction: Capital structure relates to financing of the overall activities and development of a…

Q: What are the CVP assumptions?

A:

Q: What is the DCF method?

A: DCF is a complex tool for valuation which approximates the value of any investment depending upon…

Q: What is counterbalancing?

A: Errors: The comparability and consistency of the financial statements decreases when a company…

Q: What is Hamada equation?

A: The Hamada Equation : The Hamada equation is a method used to analyse the cost of capital of firm.…

Q: What is Agency theory ?

A: Agency theory Agency theory explains the connection between the principal and agent. concerned…

Q: What is the answer of this with solution and explanation.

A: The question is related to adjusting Entires as om 31st December 2018.The details regarding the…

Q: What is the decision rule for IRR?

A:

Q: What is the answer ?

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: What are the benefits and drawbacks of FIFO?

A: Introduction: First-in-First-Out:  In First-in-First-Out method, the costs of the initially…

Q: What differential analysis and why would we use it?

A: Decision making is the process of taking the decisions based on the costs and different kind of…

Q: What is the decision rule for ARR?

A: Accounting rate of return refers to rate of profit earned on an investment. The ARR is computed by…

Q: What is ROE, ROA, and The DuPont Formula?

A: Ratio analysis is a part of management accounting in which different types of ratios are determined…

Q: Explain title Mechanics’ Liens?

A: Lien is a right of posession of an asset; in case, debts are not discharged by the owner of the…

Q: How can thepayback method be useful?

A: Meaning:   The payback period is the time required to earn back the amount invested in a…

Q: Explain the Relationship to the PW Analysis?

A: The question is based on the concept of present worth analysis of a project or cash flows.

Q: Explain Prepayment Assumptions?

A: Prepayment model : In simple words, A prepayment model is employed in banking to forecast the amount…

Q: What are the types of fundamental analysis?

A: Fundamental analysis basics is the analyzing method used to evaluate the intrinsic value of stocks…