Define stock repurchase. Evaluate the advantages and disadvantages to of stock repurchase. Explain the gains the business will achieve if goes ahead with the stock repurchase. Evaluate if these gains will benefit the business in the long-term.
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Define stock repurchase. Evaluate the advantages and disadvantages to of stock repurchase. Explain the gains the business will achieve if goes ahead with the stock repurchase. Evaluate if these gains will benefit the business in the long-term.
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- To measure the financial viability of a proposed business, which is the more powerful measure- profitability, liquidity, solvency or payback period? Support your answer with clear examples.A business can be valued by capitalizing its earnings stream. Does one measure make more sense than the others? What factors would make a stock worth more or less than your calculated value?How can the Stock price be a good indicator of your company's financial health and may also reflect the market's attitude?
- What must a company do in the long run to be able to provide a return to investors and creditors?You want to evaluate the stock of a company. Answer the following questions to guide your analysis analysis and explain what data you rely on and what you do with it? Why are the net assets of the company important? What other indicator does an investor look at when selecting investments?Which of the following considers both time value and risk factor of the business concern? a. Sales Maximization b. Asset Maximization c. Profit Maximization d. Wealth Maximization
- Discuss how financial markets could help to finance the growth of the business. Discuss with examples.Discuss the major methods of a company valuation. In doing so, explain each method and compare their advantages and disadvantages with the other methods you choose to discuss Discuss the above based on the following: Explain the market capitalization. Explain the book value. Explain (expected) future earnings. Provide a narrative on other methods (minimum of two). Compare market capitalization, book value, and future earnings methods (and your other chosen methods) with each other to include their advantages and disadvantages.What benefits is available to investors in a dividend reinvestment plan? How might the firm benefit?
- If the management of a company would like to improve the company's return on equity, what should the management of the company do?There are various methods and techniques to pay dividend to shareholders.How would these techniques/methods helpful for management to cope with market competition and increase profit. Note: Please elaborate your answer with hypothetical numerical examples?Leverage is a. The ability to earn a satisfactory return on the investments in the business. b. The ability to pay current debts when they come due. c. The proportion of debt to stockholders' equity. d. Also called profit margin.