Does the successful investment decision increase a company's market value?

Q: Conventional wisdom says that one should measure a manager’s investment performance over an entire…

A: The arguments to support or contradict the convention are:

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: What happens to the company’s return on investment (ROI) as sales increase? Explain.

A: Return on investment (ROI) = Net profit / Total assets

Q: What concept is critical in distinguishing an enterprise’s return on investment from return of its…

A: Return on investments is a financial metric that represents the ratio of the amount invested in the…

Q: As a Businessman and Entrepreneur, which do you think is more important between Return On Asset…

A: ROA is the return on assets and ROI is the return on investment.

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 an investment appraisal technique help companies move in the right direction regarding an…

A: Investment evaluation is significant for brokers since it is a type of principal examination and,…

Q: The following are investment criteria: net present value, payback, profitability index, average…

A: The question is based on the concept of capital budgeting techniques , to ascertain the true worth…

Q: What is a firm’s business risk? operating leverage? How does the operating leverage affect the…

A: A business can be defined as the entity or organization established to earn profit by providing…

Q: what would be the purchasing power of the total return on their investment

A: Purchasing Power: Purchasing power refers to the actual power of buying the goods of services with…

Q: What does this say about the company's profitability?

A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…

Q: How do profit potential and legal considerations affect a firm’scredit policy?

A: It refers to the policy which states interest rate and duration that are relevant to the funds…

Q: Would the profit change associated with sales changes be larger or smaller if a firm increased its…

A: Operating leverage refers to fixed cost level associated to the operations of a company. A company…

Q: Why is a firm’s value maximized if it invests to the point where its marginal return onnew…

A: The firm’s value is maximized when the Marginal return on new investment is equal to the kc because…

Q: Discuss how market characteristics can influence the profit rate of a perfectly competitive market…

A: Profits When the revenue of an organization is more than the expenses, costs, and taxes then it is…

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: What is the return on investment (ROI)?

A: Introduction: An investment is the acquisition of an asset or object with the intention of earning…

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: 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: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: What is the most preferred method of an investment center manager among investment turnover,…

A: An investment center is the unit of a corporation that is assessed on the basis of the utilization…

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 company is better in short term investment?

A: Answer:-  Investment meaning:- An asset or object purchased with the intention of generating income…

Q: What is the use of Capital Investment Decisions in a business as well as its role, function and how…

A: Investment appraisal or evaluation is the two-fold task of balancing risk pertain to a definite…

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: If a company chooses to minimize WACC, what will be the effect on financial flexibility

A: Basic Terms :- Financial flexibility of the firm is the ability of the firm's capital structure to…

Q: How do you measure Return on Investment (ROI) of alogistics firm?

A: Return on Investment (ROI) :               It represents the benefits earned by the investor in…

Q: How is the return on investment in the Zara firm increased effectively?

A: IntroductionReturn on investment (ROI) is an acronym meaning return on investment. It is defined as…

Q: Financially, how can an entrepreneur maximize their return on their investment?

A: This question explains about an entrepreneur maximize their return on their investment

Q: How does the value of a levered firm compare to the value of anunlevered firm that is otherwise…

A: When the company having debt in its capital structure it is referred to as a levered firm. When the…

Q: How financial synergy impact the firm's value

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

Q: What is the investment center manager's preferred method for determining investment turnover,…

A: Introduction: It is a company unit that is assessed based on how its money is used rather than the…

Q: What effect would a decreased cost of capital have on a firm's future investments?

A: Cost of capital of the firm is its weighted average cost of capital. It considers the weighted…

Q: what is return on investment capital and profitability analysis?

A: Both return on investment and profitability analysis are  profitability ratios

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: often defined as maximizing the va

A: Solution Concept The main objective of business               The business is carried out with a…

Q: What is the relationship between return on capital investment and the risk associated with the…

A: Return on invested capital is referred as an amount of the funds of the corporation, which helps in…

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…