What is the implication of managerial entrenchment: should company favor debt or equity? Why?

Q: 3. How does operating leverage impact the operating risk and profit levels of a company?

A: Operating leverage measures the percentage increase in operating income which is a result of change…

Q: why is the difference between a stock's current market price and its intrinsic value important to a…

A: Stock's current market price: The current stock price of a company is a price that an investor is…

Q: Which of the following is not a managerial planning or control report?

A: Identification of incorrect option with regards to managerial planning or control reports

Q: How is it possible for a firm to grow itself out of business and how can this be guarded against as…

A: Finance managers are accounting experts concerned for a company or organization's financial…

Q: What are the options available to a company in the event of a financial failure?

A: Overspending and a more considerable degree of illiquid assets might lead to the firm's financial…

Q: Explain the difference between management and stockholders?

A: Answer: Differences between managers and stockholders: Within a corporation, shareholders are the…

Q: How could overconfidence affect the financial manager of the firm and the firm’s shareholders?

A: The company have the option to issue its equity shares to the public for raising capital or…

Q: What is a firm’s business risk? operating leverage? How does the operating leverage affect the…

A: A business can be defined as the entity or organization established to earn profit by providing…

Q: The important aspects of financial management do not include the following: a. Financial decision b.…

A: Financial management is management of financial assets and planning key financial decision making…

Q: Why would managers be willing to make decisions based on estimated revenues and expenses instead of…

A: The estimated revenues are the expected amount of revenues and estimated expenses are also the…

Q: Importance of gatekeeper in company and financial?

A: Gatekeeper     The set of institutions, as well as actors, help to provide investors with the time…

Q: Why is it that the goal of financial management is maximization of shareholders’ wealth rather than…

A: Financial management is defined as the planning, organizing, directing, and also the controlling of…

Q: is it possible for a company to expand itself out of existence, and how can this be avoided as a…

A: Introduction : When a company goes out of existence and shuts down its operations, it is stated that…

Q: Evaluate the following statement: Do the ends of positive organizational consequences justify the…

A: Earning management is an accounting device that is used to produce the economic statements showing…

Q: In Management Accounting, what is the transfer price? What three areas does transfer price affect in…

A: SOLUTION- TRANSFER PRICE- IT IS THE PRICE THAT RELATED PARTIES CHARGED TO EACH OTHER. ON THE OTHER…

Q: What is the primary objective of the financial manager? How are they different from other manager

A: Financial manager is a person who is  responsible for carrying out various financial functions of an…

Q: What can go wrong with financial leverage? Should it be used at all by a business?

A: Financial leverage refers to a term that tells us the use of money which one borrowed means the debt…

Q: How can a company expand itself out of existence, and how can this be avoided as a financial…

A: Introduction: Finance managers are accounting professionals who are concerned with the financial…

Q: What is the value of common-sizing analysis? Why would a company do such an analysis on another…

A: Lets understand the basics. There are two type of analysis is generally made by the entities which…

Q: What goals might be persued by managers instead of maximization of shareholders wealth

A: Shareholders are individuals, entities, or institutions that own shares or equity in a company. When…

Q: But what's the distinction among accounting and management

A: Accounting: It is the process of recording any financial transactions incurred in the financial year…

Q: to consider the so-called corporate social responsibilities in making inve

A: Investment decisions relate to how a business's funds areallocated among various assets for the…

Q: Explain how does the earning forecast is effective in assessing company performance?

A: In order to access the company performance it is important to understand the trend and analyse the…

Q: For example, how does understanding profit and loss impact your perspective on operating a company?

A: Knowledge of profit and loss while operating a company is critical to the success of the enterprise.

Q: How might managerial incentives affect the analysis of earnings persistence?

A: Analysis of earnings persistence Earning persistence which was indicating that the total earning…

Q: What are some of the pros and cons of using stockoptions to compensate managers?

A: Employee stock options: Stock options are the non-monetary incentives that are given to particular…

Q: What could possibly go wrong while using financial leverage? Do you think it should be utilized by a…

A: Financial leverage: Financial leverage is a word that describes the use of borrowed money (debt) to…

Q: What factors reduce the effectiveness of companies business plan

A: A business plan is a written document that explains all the things about business objectives and how…

Q: Why are financial ratios so critical to managers when evaluating business performance

A: Financial Ratios: Financial ratios are used to evaluate firms' comparative strength by doing…

Q: Discuss why it is difficult to discern whether a firm does in fact practice earnings management.

A: Earnings management entails deliberate manipulation of a company’s earnings. Here earnings reported…

Q: Do you think most organizations use one or both managerial and financial accounting? Why?

A: Yes, both managerial and financial accounting is required for an organisation due to the following…

Q: As a manager, which income statement format do you find more useful - the traditional financial…

A: A traditional income statement, also referred to as a profit and loss statement, reveals whether a…