How would you describe the basic components of WACC to a group of decision makers in a company? On the most basic level, if a firm’s WACC is 12 percent, what does this mean? In calculating the WACC, if you had to use book values for either debt or equity, which would you choose? Why?
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How would you describe the basic components of WACC to a group of decision makers in a company?
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On the most basic level, if a firm’s WACC is 12 percent, what does this mean?
-
In calculating the WACC, if you had to use book values for either debt or equity, which would you choose? Why?
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- The cost of equity is ________. Group of answer choices A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnoverYou wish to compute a firm's sustainable growth rate from its accounting statements. To do so, you could use the values of: Question 3 options: A) Total assets, net income, and the retention ratio. B) Net income, equity, and total assets. C) Net income, equity, and the dividend payout ratio. D) Interest paid, equity, and total assets. E) Total assets, interest paid, and equity.which one is correct please confirm? QUESTION 9 The value of a firm is influenced by three types of financial decisions, including all of the following EXCEPT ____. a. par value decisions b. financing decisions c. investment decisions d. dividend decisions
- Which of the following is the correct explanation for the purpose of financial risk ratios? Select one: O a. They show the relative proportion of debt items with respect to shareholders' equity or total capital. b. They show the profitability of the company over a specific period of time. c. They show the probability of whether the company will face problems in operations. O d. They show the relative levels of liquid assets of the company.Why is the industry considered in financial forecasting of a firm? (very short answer please, 3 lines maxmem)The cost of equity is ________. a.equal to the amount of asset turnover b.the interest associated with debt c.the weighted average cost of capital d.the rate of return required by investors to incentivize them to invest in a company
- Please see below. Be sure to include an explanation as well. If you were a user of financial statements, what type of ratio/analysis do you think would be most important to use to make sure the company you have invested in is doing well? What would you look for in a company that you were considering investing in?Discuss why an investment analyst would use financial ratio analysis to decide the investment-worthy of a company? Give at least five reasons why.The price/earnings ratio is commonly used by investors to OA. evaluate their ability to earn a return on their investment OB. determine the market value of the company OC. determine the market price per share of stock of a company OD. determine if the company has a low amount of debt
- Which of the following is the correct explanation for the purpose of financial risk ratios? Select one: a. They show the probability of whether the company will face problems in operations. b. They show the profitability of the company over a specific period of time. c. They show the relative proportion of debt items with respect to shareholders' equity or total capital. d. They show the relative levels of liquid assets of the company. According to the information given in the table below, which of the following is Raw materials consumed? Opening Stock Raw Materials 32300 Purchases 128800 Freight in 4950 Sales return 2350 Wages paid to labor 78900 Closing Stock Raw Materials 28400 Select one: a. 135300 b. 149900 c. 143700 d. 137650 d. Current ratioDiscuss your assumptions on the key factors such as industry characteristics, firm characteristics, sales growth, profit margin, dividend policy, asset requirement, and leverage. How do these factors affect your forecasting of financial statements? And discuss why the circular reference occurs between the proforma income statement and balance sheet in your forecasting model?How would one assess below parameters using financial statements: a) Market assessment of the firm and its market capitalizations. B) the firm as a “going concern” and sustainability.