What are the best two measures for the profitability of firms that are not publicly traded?
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What are the best two measures for the profitability of firms that are not publicly traded?
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- Under what assumptions market value of a company does not depend on its capital structure? Discuss.What is the relationship of WACC to the market value of a company?1. How are the capital market line and security market line similar? How are they different? 2. Explain the difference between financial risk and business risk? What factors influence a firm’s business and financial risk?
- There will likely be a difference between your calculation of the Company’s intrinsic value and its actual stock price. If there is a difference, what are the likely determinants of that difference? I am wondering what usually is the difference of company's intrisic value and actual stock price, or what I could look for. Also, if what are usually the determinants of a difference?Which of the following is NOT a tool to measure firm performance? O Return on equity. O Economic value. Market capitalization. Firm branding.What factors contribute to the business risk of a company? What is financial risk? How do the various sources of risk affect the optimal capital structure?
- Is it realistic to believe that an optimal capital structure exists or might be achieved by a company?Which is easier to calculate directly, the expected rate of return on the assets of a firm or the expected rate of return on the firm’s debt and equity?)How would you relate information asymmetry to firm’s dividend policy?
- How does a semi-strong market affect a company’s capital structure? Discuss the possible exposures and impact. Provide examples to justify your reasoning.What are the advantages/disadvantages of using the market multiples method to estimate the value of a company?What’s the risk of competition on financial markets and institutions profitability?