which ratio can be easily identifiable to maximize the value of a firm

Q: What is the difference between the ratios that use the market price and the other ratios? Why might…

A: Ratio analysis mistreatment money statements includes accounting, securities market, and management…

Q: Discuss how diversification reduces firm specific risk.

A: Diversification is investing money in many investments rather than a single investment. In…

Q: What does it mean for markets to be efficient? What are the differences in the degree of efficiency,…

A: The markets are considered to be efficient if the information related to various aspects that create…

Q: Define semistrong form of market efficiency

A: Answer: Efficient market is one where the market price constitutes a balanced estimate of…

Q: Explain the following statement: The optimal financial policy depends in an important way on the…

A: The easy it will be to sell an asset for generating cash, the more it will be feasible to utilize…

Q: When doing a time-series comparison, an analyst would do which of the following? Select one: a. Hold…

A: Financial analysis is the analysis of the financial items and transactions of a firm and helps in…

Q: What is critical information to review when assessing a company's overall leverage position

A: Financial leverage refers to a company's ability to repay its obligations in order to continue…

Q: Explain what Return on Assets (ROA) measures? Will two firms with the same EBIT have the same ROA?

A: Return on assets is a measure used by companies to analyse how effectively assets of the business…

Q: The limitations of ratio analysis as a tool for strategic decision making

A: It is frequently required to compare the performance of a company or multiple organisations across…

Q: The management approach requires a firm to define segments on the basis of its internal…

A: Diversified Companies:   The companies which are engaged in multiple businesses, provides a large…

Q: What is the total investment approach?

A: Total Investment Approach: In the Total Investment Approach, there is a risk-return tradeoff in the…

Q: How do you calculate enterprise value?

A: Enterprise value is the measure of the total value of the company. It gives aggregate value of the…

Q: s maximizing the value of the firm an appropriate goal

A: Value of the firm is the net worth of the firm. Value of a firm can be calculated by summing up the…

Q: ccording to Miller and Modigliani, it is at really determines a firm's value.

A: According to M&M, value of firm is the sum of present value of all future cash flows.

Q: What is the firm value

A: EBIT = $20,000 every year in perpetuity Cost of equity (ke) = 15%Tax rate (t) = 40%Debt = NIL…

Q: While comparing investment returns is an important starting point in evaluating investment…

A: Following are the steps involved in the performance analysis of investments:Identification of the…

Q: Explain why it is important in performance evaluation to distinguish between investment centers and…

A: Return on investment (ROI): Return on investment evaluates how efficiently the assets are used in…

Q: Why is FCF an important determinant of a firm’s value?

A: The cash available with a firm after paying operating expenses and capital expenditure of the firm…

Q: How the concepts and system of benchmarking could support one company to improve its…

A: Introduction: For any organization, benchmark is acknowledgement for its outstanding operating…

Q: Define strong form of market efficiency

A: Strong form of market efficiency is considered to be the strongest form of efficient market…

Q: what are the sssumptions about market efficiency?

A: The theory that states that all the information available in the capital market is reflected in the…

Q: Why might an analyst incorporate the industry-market-size factor and the interrelationships among…

A: Operating Income: The outcome of deduction of operating expenses and depreciation from the gross…

Q: Is stakeholder management critical?

A: Stakeholders are all such individuals who are having interest in the company or who will be affected…

Q: For a given firm, why does WACC change over time?Can the firm control the factors that lead to…

A: WACC is the weighted cost of funds to the firm. It represents the proportion of the different…

Q: give empirical evidence about market efficiency stong form

A: Introduction : In simple words, strong form market efficiency hypothesis states that securities in…

Q: Explain Yield Enhancement?

A: A "yield enhancement technique" is an investment approach that includes purchasing options at the…

Q: Define the value maximization of firm goal

A: The value maximization goal is understood as a goal to maximize the wealth of the company's…

Q: What is the main determinant of the level of investment?

A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…

Q: Determine Felipe Enterprises's operating leverage.

A: Degree of operating leverage is defined as a the entities ability to use fixed operating costs to…

Q: What will be Measures of Investment Performance Using Ratios?

A: It is always essential to evaluate the performance of the investments to decide whether the…

Q: What is a firm’s fundamental value (which is also called its intrinsic value)?

A: The intrinsic value is also called as the fundamental value. It is the calculation of the worth of…

Q: Define solvency and profitability. How are they alike?

A: Answer: Solvency is status of company when the asset is higher than liabilities. Profitability  is…

Q: How financial synergy impact the firm's value

A: Financial Synergies: Financial Synergy happens at the joining of two businesses increases financial…

Q: Explain advantages of Centralization and advantages of De-Centralization in terms of economic…

A: Centralization is the process of making all the relevant decisions from the central authority. The…

Q: What is the most important reason for an organization to use enterprise riskmanagement?

A: Accounting information systems (AIS) collect and process transaction data before distributing…

Q: Define lean accounting.

A: Lean Accounting: Lean accounting represents amendments to be made to a company's management of…

Q: What does the term “value of an unlevered firm” mean?

A: A firm is an organization that sells or produces something or that offers a service.

Q: How exactly does the Net Present Value tool work and how is the IRR set within a company?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: How can we maximise our return on investment (ROI) and what role does a balanced scorecard play?

A: The return on investment is the measure of total return upon a particular amount of investment made…

Q: Why are statistical approaches and tools important in investment decision-making?

A: This question explains about the statistical approaches and tools that are important in investment…