Why do most academics and financial executives regard the NPV as being the single best criterion and better than the IRR? Why do companies still calculate IRRs?

Q: Discuss the implications of the efficient market hypothesis for financial managers and security…

A: An efficient market hypothesis is defined as the hypothesis, which used to state that the share…

Q: Is it feasible for a new company endeavor to be lucrative while also experiencing financial…

A: Introduction: According to Entrepreneur, it takes a minimum of three years for a company to become…

Q: Discuss how the free-rider problem aggravates adverse selection and moral hazard problems in…

A: The adverse selection problem in the security market cannot be completely solved by the system of…

Q: d. Explain why NPV is considered technically superior to Payback and Accounting Rate of Return (ARR)…

A: There are various capital budgeting methods that can be used to assess or evaluate various…

Q: Management has constructed the below table of estimates reflecting the possible returns and…

A: a) Determine the expected value of return for the above company   Expected return calculation…

Q: tha

A: A financial forecast gives businesses access to cohesive reports, allowing finance departments to…

Q: What do you see as some of the possible problems if shareholder value is seen as a strategy (and not…

A: Strategy refers to the financial approach for the planning of the functions that are based on a…

Q: What are some advantages and disadvantages of top-down versus bottom-up investing styles?

A: Top-down investing and bottom up investing procedures are the procedures used in different type of…

Q: Are the financial projections realistic and healthy?

A: Estimating things before the real cost and revenue incurred is known as financial estimation.…

Q: Why do you think Dividend Irrelevance theory is unrealistic?

A: The dividend irrelevance theory was proposed by Merton Miller and Franco Modigliani. According to…

Q: Why investors are willing to invest in high-tech firms instead of conventional financial sources?

A: Conventional financing is a scheme related to financing of home that is offered by financial…

Q: Why do you think capital investment decisions are some of the most important decisions that…

A: Capital investment refers to all those activities that a business entity undergoes while allocating…

Q: Do normal valuation metrics work like P/E, P/B etc. tech startups companies like…

A: Startup companies are new age companies that have flourished in the 21st century. These are often…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

Q: Do firms have any responsibilities to society at large? ◦Is stock price maximization good or bad…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: what does it mean if the NPV and IRR are both positive, should the company invest on the project or…

A: Net Present value refers to the present value of future cash flow, which means cash flows generated…

Q: Is it feasible for a new company endeavor to be lucrative while still experiencing financial…

A: Meaning of Lucrative Lucrative which simply describes as brings profitability into the business…

Q: How do managers, bankers, and security analysts use (a) trend analysis, (b) benchmarking,(c) percent…

A: Introduction: Usually a managers, bankers, and security analysts use financial tools and techniques…

Q: b. Discuss why financial analysts prefer the CAPM model over other evaluation models?

A: CAPM is an abbreviation used for Capital Asset Pricing model which is used by investors or portfolio…

Q: Ceteris paribus, current financial market returns will increase as

A: Capital goods are those fixed assets for the company which help in the production process. They are…

Q: Forecasting a firm's future sales is the key element in developing a financial plan, yet forecasting…

A: Financial planning: Financial planning is made to determine for an organization strategic goals and…

Q: Arguments against a robust financial market being the foundation of stable economic growth and…

A: As the name implies, financial markets are a type of marketplace where you may sell and purchase…

Q: The readings for module 3 explain that past performance for a company or stock is not a guarantee of…

A: The earnings of a corporation are the most basic measure of a stock's worth. Because you're buying a…

Q: If the APT is to be a useful theory, the number of systematic factors in the economy must be small.…

A: APT (Arbitrage Pricing Theory) Alternative multi-factor assets pricing theory helps in analyzing the…

Q: How do the FCFE, APV, and corporate valuation approaches differ from one another? How are they…

A: FCFE, APV and corporate valuation all are techniques of valuation on the basis of equity. This…

Q: Why have ETFs grown to become one of the most popular investment products? What are some of the…

A: Exchange traded funds are all such mutual funds which will be traded over the exchanges and they are…

Q: Sensitivity analysis is concerned with determining how much variation in financial data, the…

A: Sensitivity  analysis is a monetary model that decides what target factors are meant for dependent…

Q: What is the investment center manager's preferred technique of calculating investment turnover,…

A: It is a unit of a firm that is evaluated based on the usage of its capital rather than the profits…

Q: Do normal valuation metrics work like P/E, P/B etc., in tech companies or do investment bankers…

A: A startup is a firm that is in its early phases of operation.  These businesses usually start with…

Q: How does the risk return trade-off relate to the financial manager's main goal?

A: The main goal for a financial manager is to generate the maximum value of the firm to its owners.…

Q: Why does behavioral finance considered investors as "normal" yet biased and errors? Support being…

A: Behavioural Finance is the branch of Behavioural economics that deals with the behavior and…

Q: s it important to identify what costs will be eliminated in the conduct of finan

A: Turnaround recovery ways are a variety of measures that corporations use to get over a amount of a…

Q: How We use quantitative data to manage risk and create investment vehicles

A: We can define risk as the variations in return. While investing in a security, it is very important…

Q: What factors are frequently ignored in financial analysis? Why?

A: Qualitative factors are the factors that deal with an intangible as well as inexact information that…

Q: The DPBP is ideal as a stand-alone measure of economic worth. True or False?

A: Discounted Pay-Back Period or DPBP is period in which discounted value of future cash inflows is…

Q: The PE ratio is a very common method used by investors to get a quick calculation on the market’s…

A: P/E ratio is one of most common methods of valuation of company and P/E ratio compare price of stock…

Q: er confirmatory value?

A: Predictive value : The knowledge has predictive value, which implies it may be utilised to forecast…

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…