What is the put-call ratio? What is it used for? What are considered high and low values and what do the high and low values indicate?

Q: What limitations do ratio analysis have?

A: Ratio Analysis: It is a technique used in the financial analysis field. Ratio analysis helps to use…

Q: is the intuition behind multiples or comparables valuation? What are the advantages of this m

A: Multiple method is very common method of valuation of stock in market.

Q: Why is it crucial to estimate the MARR correctly?

A: It is the minimum return rate on the project which an entity computes prior to the staring of the…

Q: What is the high-low method and under what circumstances would it be used? Is there anything about…

A: The high-low method in cost accounting is a method of attempting to separate fixed and variable…

Q: What can be understood by abnormal return?

A: Note firstly we understand what is meaning of abnormal return. Basic meaning of abnormal return is…

Q: general, what does a high Tobin's Q value indicate and how reliable does that value tend to be?

A:

Q: “High correlation between two variables means that one is the cause and the other is the effect.” Do…

A: Correlation:Correlation is a way to ascertain the basic equation or bond between two given…

Q: What assumptions and limitations does multiples valuation have?

A: Multiple valuation or relative valuation is a market based valuation method where the target company…

Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…

A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…

Q: What are the steps in computing the cost of a prediction error when using the EOQ decision model?

A: Economic Order Quantity (EOQ): Economic order quantity is the quantity of order that is purchased…

Q: An analysis of what happens to the estimate of net present value when only one input variable is…

A: Net Present Value: It is the present worth of future cash flows and the initial cost of the project.…

Q: What is meant by the term abnormal rate of return?

A: Abnormal rate of return is return earned above or below the normal rate of return.

Q: Why do conflicts sometimes arise between the netpresent value (NPV) and internal rate of return(IRR)…

A: The basic assumption between NPV and IRR method is the cash flows are reinvested. In the NPV method,…

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: Under what conditions will the weighted average and FIFO methods give essentially the same results?

A: Under the FIFO (First in first out) method of inventory valuation, goods which are purchased first…

Q: The Peg Ratio appears to be a refinement that allows us to do what? Is the ratio aptly named?…

A: The price earnings ratio of the PE ratio is one of the most common measure to value the stocks of…

Q: When calculating equivalent values, what do we need to identify?

A: Equivalent values refer to the worth of the amount at any point of time. In other words, it defines…

Q: What is the intuition behind multiples or comparables valuation? What are the advantages of this…

A: Answer : What is the intuition behind multiples or comparable valuation? The intuition behind…

Q: Which of the following is NOT a factor in the calculation of a FICO score?

A: FICO score FICO score is a credit score created by the Fair Isaac Corporation.

Q: advantages and disadvantages of the scattergram method as compared to the high-low method?

A: Solution High-low method takes high level activity and low level activity and measure the total cost…

Q: What types of variables are commonly used in a CRA Z-score model? Define the ratios and explain how…

A: CRA-Z model helps in finding the organisation's default and it eases to measure the control of the…

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: What does a high current ratio indicate?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: what formula did you use to calculate PVIFA?

A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…

Q: What caused a decrease in the current ratio?

A: The current ratio is the ratio that is used to calculate the ability of the company to pay off its…

Q: When completing a differential analysis, when are the differences shown as positive amounts? As…

A: In differential analysis , two alternatives are compared by taking first alternative as base and…

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: How is the standard deviation of returns calculated?

A: Standard deviation is ascertained as follows: The mean worth is dictated by including all the…

Q: What is the difference between YTD and YoY return? Provide an example

A: In the question they have asked regarding YTD and YOY differences between them so they will be…

Q: What would the effect of the failure in the ratio measurement?

A: Ratio measurement in terms of financial world depicts that a single accounting figure by itself may…

Q: In what circumstances is the compressed adjustedpresent value (APV) model useful, and how wouldit be…

A: The question is based on the concept of adjusted present value (APV). APV uses net present value…

Q: What is the reason P/E Ratio become lower and higher?

A: The Price Earnings Ratio or P/E Ratio defines the relationship between the stock price and earning…

Q: Why is ratio analysis so significant?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Why are comparative ratio analyses useful?

A: Financial analysis can be defined as the evaluation of the profitability, durability and feasibility…

Q: What is the VIX index? What is it used for? What are considered high values for the VIX and what do…

A: Volatility: - Volatility is a measure of movement or price variation in assets on daily, weekly,…

Q: When we work with the breakeven point, how important is it to understand what a decision variable…

A: The question is related to Marginal Costing. The break-even point is that level of sales at which…

Q: What is Roll’s critique of CAPM tests?

A: Capital asset pricing model is a model that is used to estimate the expected return on an asset. In…

Q: When NCREIF returns and REIT returns are compared, NCREIF returns exhibit a much lower pattern of…

A: Introduction: NCREIF is nothing but an acronym for National Council of Real Estate investment…

Q: What are the advantage  of the scattergraph method over the high-low method? The high-low method…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: What do you understand by current ratio? What are it uses? What are its limitations?

A: As per Bartleby policy, only one question will be answered. A ratio is simply a mathematical…

Q: t is objective?...

A: Objective vs subjective trading: Most traders follow either an essentially objective or subjective…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…