Is the dividend discount methodology an appropriate method of valuation for Airtasker? Why/why not? Suggest and explain two other valuation methodologies that could be utilised?

Q: What text and supplemental information, is there a best choice for using any one specific method of…

A: Investment Valuation: Investment valuation refers to the techniques and procedures employed in…

Q: Create a classification of investment chart to distinguish between simple and nonsimple investment?

A:

Q: What is the Joint Hypothesis and what are its implications for tests of asset pricing models?

A: The Capital Asset Pricing Model (CAPM) is a model that explains the relationship between expected…

Q: why it is important to use profitability ratios

A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…

Q: Please answer the question as follow? Profit Maximize and Wealth Maximize, what is difference?…

A: financial management is important because it helps organizations plan, organize, direct, and control…

Q: computing cost of equity.

A: Equity is the amount of capital invested or owned by the owner of a company. The equity is evaluated…

Q: What type of analysis uses ratio analysis to evaluate equities? A) Technical analysis. B)…

A: Fundamental analysis (FA): It is a technique for estimating a security's intrinsic value by looking…

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: explain diversification and buy and hold stratgeies

A: In the world of finance and investment diversification is an important concept and strategy that…

Q: Write Example for preference dividend?

A: Formula: Preference dividend = Preference shares x Preferred dividend rate

Q: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: What are situations where valuation is applie

A: The process of assessing the fair market value of a company's assets or operations is known as…

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: Briefly discuss dividend relevance and dividend irrelevance. Theory  M&M = arguments

A: STEP 1 The impact of dividends on a company's value is the subject of dividend theories. One type of…

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: What is the Fama-MacBeth Method in asset pricing assumptions?

A: Fama Mac Beth method is kind of regression method used for determining of parameters for like CAPM…

Q: What are the consideration that need for dividend pay out policy?

A: The dividend is referred to as the share of profits, which used to be distributed to the company's…

Q: e main hindrances in valuation estimates in busiiness valuation?

A: Introduction Knowing how much an asset is worth and what factors influence its value is critical for…

Q: Explain what is financial ratio analysis?

A: Traders and investors use ratio analysis to assess a company's financial health by evaluating…

Q: How would you explain Valuation Principles and Law of One Price in simple language to someone…

A: Valuation principles and the law of one price are fundamental concepts in economics and finance that…

Q: excess earnings method, capitalized earnings approach, and discounted future earnings approach which…

A: ADJUSTED NET ASSETS METHODThe difference between the fair market value of the business assets and…

Q: Explain the importance of perspective analysis to financial statement analysis?

A: The process of evaluating a company's performance or value using its balance sheet, income…

Q: What is multistage valuation model?

A: The multi-stage dividend discount model is an equity valuation model that expands on the Gordon…

Q: Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable…

A: Option C is correct.

Q: Explain briefly the ideas behind the dividend irrelevance theory.

A: The dividend irrelevance theory was created by Modigliani and Miller in 1961. The authors concluded…

Q: What is the difference between-1 accounting and Finance? answer this ?question with suitable example…

A: The difference between accounting and finance is as follows:

Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…

A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…

Q: Which option is most profitable, keeping or replacing?Insert numerical value. What is one relevant…

A: The old machine is replaced with a new machine only when the production is improved and there is a…

Q: Relative valuation has several advantages relative to other valuation techniques.Which of the…

A: An advantage of relative valuation is:Ease of Use and Understanding:Relative valuation is often…

Q: What do you understand the vertical and horizontal income statement account and balance sheet…

A: The financial statement contains both income statement and balance that are very useful for users'…

Q: Explain the importance of financial ratio analysis, including the importance or relevance of…

A: Its a way to conduct a company's financial health check.  Suppose you are the investor and you are…

Q: What are some possible financial decisions in which using the Future Value (FV) formula might be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…

Q: Briefly explain the difference between liquidity, solvency, and profitability analysis.

A: Liquidity, solvency and profitability analysis is performed to evaluate the company's performance.…

Q: What is the main advantage of receiving dividend income vs. interest income? Explain.

A: A person receives dividend income on the equity investments made by him/her.In contrast, a person…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

Q: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…

A: The ratio refers to the measure that determines the relation between two numbers. In accounting, 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: __________ considers the impact of changing one or more inputs or assumptions on the resulting…

A: Capital budgeting is one of the important process of financial management. By this procedure,…