friend who knows you study accounting approaches you to discuss share market investment strategies. They believe deciding which shares to invest in should be based solely on understanding the business model and reading analyst forecasts regarding the company. Is this strategy sound? Why or why not? What other approaches or tools would you recommend to assist in making investment
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A friend who knows you study accounting approaches you to discuss share market investment strategies. They believe deciding which shares to invest in should be based solely on understanding the business model and reading analyst
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- If an outside investor decides to invest in a company, which financial statement is more essential, the Balance Sheet or the Income Statement? Explain why you made the decision you did.Balance Sheet vs. Income Statement: Which financial statement is more significant to an outside investor when making a decision to invest in a prospective company? Give a rationale for it.To what extent would market timing be an effective strategy for a financial manager regarding high-income investors? Retirees? Please explain and ensure to add references and citations.
- 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?The objectives of financial reporting include which of the following? a. Financial reporting should provide information ·a. that is comprehensibie to all potential investors. b. Financial reporting should provide information directly to potential investors about the nature, timing, and uncertainty of prospective cash dividends. c. Financial reporting should provide information that is useful to potential investors in making rational investment decisions. d. Financial reporting shouid provide information about an enterprise's economic resources bưt not about circumstances that change those resources.Managers explain and voluntarily disclose the forecasted financial information to the external financial users at the beginning of the period. The purpose to provide the forecasted financial information is to help the external investors interpret managers’ forecasted earnings by examining the profitability of the firm when the investors forecast the earnings and make investment decision.Discuss the extent to which you agree/disagree with that trend? You should support your reasoning with example(s).
- Determine whether financial statement, the Balance Sheet or the Income Statement, is more essential to an outside investor when considering to invest in a possible firm based on your study of transactions. Justify your selection.Discuss how your company could analyze investment options in order to guarantee that choices are made in accordance with the business's requirements and financial plan.An investment group is looking to invest some money into a company. Where should the investment group look for relevant information about the company's performance?
- Which of the following statementsregarding the importance or information provided by accounting to investors and creditors is Nor correct? It helps investors and creditors assess the relative risks and returns of investment opportunities. It allows investors and creditors to compare income and assets of companies. It determines the share prices and lending portfolios for investors and creditors. It helps investors and creditors channel their resources more effectively.As a potential investor in a firm or perhaps the buyer of a particular business, would it be advisable for you to evaluate the company's financial statements? Why or why not? What key information would you seek from a firm's financial statements?Direction: Answer comprehensively the following questions. 1. Explain the shareholder wealth maximization goal of the firm and how it can be measured. Make an argument for why it is better goal than maximizing profit. 2. What conflicts of interest can arise between managers and stockholders? 3. Name and describe as many stockholders as you can. 4. State the kinds of assurances that investors and creditors seek from a firm. 5. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant.