Which of the following is an economic motivation for an acquisition? Using a cash surplus. b. Diversification. c. Economies of scale. d. All of these choices.
Q: Identify the cash flow series associated with production or service over thelife of the asset?
A: Definition: Cash inflows: The amount of cash received by a company from the operating, investing,…
Q: True or False In the net present value method, market research costs incurred in the past should be…
A: An investment appraisal depicts a financial analysis of a capital project that requires a huge…
Q: Realizable value
A: Which one of the following terms best describes the amount of cash or cash equivalents that could…
Q: Explain what effect will an upward asset revaluation have on subsequent periods’ profits
A: The revaluation of assets means the change in the value of assets over a period of time this made…
Q: Whats is the effect of increasing the asset turnover (ATO) on enterprise price-to-book value,…
A: Asset turnover ratio is The asset turnover ratio measures the value of a company's sales or…
Q: Value-in-use is O a. The discounted present value of future cash flows arising from use of the asset…
A: Value-in-use:-It is future cash inflows and outflows which arise from the continuous use of assets…
Q: Explain how current assets’ investment policies affect the firm’s risk and return trade-offs.
A: Current assets for a company are all those assets that are readily available for the conversion into…
Q: The primary measurement basis is a.) The current market price if the asset currently held was sold…
A: there are different measurement devices that are used- historical cost current cost net realizable…
Q: Which of the following does not assign a value to a business opportunity using time-value…
A: Answer : D Payback period method
Q: The payback method measures: The profitability of an investment. The net cash inflow from an…
A: Pay back period is most popular method of capital budgeting decisions and is quite simple to use and…
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: One method for calculating enterprise value includes the present value of which of the following…
A: Enterprise value : total value of the company that shows how much will it cost to buy the firm.
Q: Which method of evaluating capital investment proposals uses present value concepts to compute the…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: What does it mean to adopt a maturity matching approach to financing assets, includingcurrent…
A: Maturity matching states that long period funds must be utilized to finance long period assets and…
Q: what are some pros and cons of holding high level of current assets in relation to sale?
A:
Q: 1. What is the gain on sale of investment using the FIFO approach?
A: LIFO is short for last in first out. it means the element which is inserted into the structure last…
Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…
A: Operating current assets are the short-term assets utilized to promote a business's processes
Q: Wealth maximization objective is superior to the profit maximization‘- explain
A: The company works for the generation of profit from the operating activities conducted. Over the…
Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…
A: Finance transformation can be defined as a business-wide combination of process, system, and culture…
Q: Discuss the following models in relation to purchasing power parity.
A: Comparative rates of inflation in different countries are the factors influencing the exchange rate.…
Q: Which of the following scenario shows the financial manager’s financing function? a. Prioritizing…
A: Financial manager's functions include: a) Getting financing at lower cost b) Planning and allocating…
Q: How would discounted cash flow be applied to fair vaue valuations?
A: Valuation of a company means to determine the intrinsic value of a company or the value which the…
Q: Adjusted present value technique is a technique that A) adjusts conventional present value for…
A: Adjusted present value technique is very common method used in the valuation of stock and companies…
Q: What is a discounted cash flow approach to fair market value estimation, and what are some of the…
A:
Q: Which of the following phrases best describes the term " actual cash value"? a. market value b.…
A: Actual cash value is the actual amount at which the property could be sold and it is usually less…
Q: Relative Valuation links an asset's value to its inherent qualities, such as its ability to produce…
A: ( Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Will the carrying value of a long-term asset be equivalent to its market value under typical…
A: Here is the Answer
Q: What are some pros and cons of holding high levels of current assets in relation to sales? Use the…
A: The DuPont equation depicts the return on equity for a firm taking into consideration the firm’s…
Q: asset
A: The term CAPM or capitam asset pricing model is a model which shows the relationship between risk…
Q: True or false DCF Approach Model examines the price of "similar" assets in relation to a common…
A: 1. DCF Approach Model examines the price of "similar" assets in relation to a common variable, such…
Q: The net present value of an investment represents the difference between the: present value of cash…
A: To determine the value of NPV, NPV is the difference between the present values of future cash flows…
Q: Why is the compressed adjusted present value approachappropriate for situations with a changing…
A: Compresses Adjusted Present Value shows Net Present Value(NPV) of a project after considering the…
Q: e following methods of capital budgeting tries to equate the present value of cash inflows to…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: n current purchasing power technique (a) Why is it necessary to consider monetary assets…
A: Purchasing Power- Purchasing Power defines the value of currency in relation to goods, It depicts…
Q: Which of the following values for an intangible asset would a company capitalize and amortize? a.)…
A: Intangible assets are those assets which cannot be touched or seen but can be felt. Goodwill,…
Q: Which of the following statement/s are correct? (a) According to fair value measurement, assets are…
A: Fair value refers to the current worth or the amount at which the assets are sold in the market or…
Q: What should a firm’s goal be regarding the cash conversion cycle? Explain
A: The cash conversion cycle measures the number of days between the company making a deposit to buy…
Q: Discuss the two variables that must be considered whether you are using the present value of cash…
A: The discounted cash flow approach and the relative valuation approach are both used to value any…
Q: Discuss why the present value of cash flows and the relative valuation ratios valuation approaches…
A: Valuation of entity is done in two methods as: Discounting expected inflows from entity in upcoming…
Q: Which of the following are the key factors when determining asset allocation for an investment? I.…
A: Asset allocation can be defined as the strategy which involves allotment of assets of portfolio of…
Q: Explain how the cash flows are structured in order to estimate thenet advantage to leasing
A: Net advantage to leasing (NAL) refers to the overall financial savings that might probably result…
Q: Which control is not a part of the fixed asset system?a. formal analysis of the purchase requestb.…
A:
Q: Using the free cash flow valuation model, identify avenues by which capital structure can affect the…
A: According to second preposition of the Modigliani and Miller approach, value of firm changes due to…
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- Which of the following terms accurately describe what a resource is worth in its next- best use. a. Sunk cost b. Opportunity cost c. Incremental cash flow d. ExternalityWhich of the following is an approach to value? Pick the best answer. Question 1 Select one: a.Discounted cash flow b. Asset based c. Comparable companies d. Industry rules of thumbexplain the unique characteristics of the asset class, their associated risks and potential returns. Foreach asset class, you should use one or two examples to support your explanation. Asset Class Characteristics Risk Potential Returns ExampleCash Products Fixed Income Equities CurrenciesDerivatives
- Discuss the following models in relation to purchasing power parity. Use suitable examples oneach:i. Asset Market Model ii. Balance of payments modelWhich approach to investment analysis is "best" in terms of accounting for both the timing and amount of revenue streams from a potential investment? A. the payback period B. the simple rate of return C. the net present value D. the internal rate of returnWhich is also known as wealth maximization? a. Value Maximization. b. Stakeholder Theory. c. Profit Maximization. d. Product Maximization.
- Question #1. What determines the value of an economic asset (as opposed to an asset that hasvalue for reason of sentiment)?How does the size of the initial investment affect the internal rate of return on the net present value models?The third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion? A. payback method B. accounting rate of return C. internal rate of return D. inventory turnover
- Which of the following does nor assign a value to a business opportunity using time-value measurement tools? A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. payback period methodFAR- Conceptual Framework Kindly help me answer the following : 1. Which of the following should be considered a current value measure? * a. Replacement cost and discounted cash flow b. Replacement cost and exit value c. Replacement cost, exit value and discounted cash flow d. Exit value and discounted cash flow 2. Obligations to transfer an economic resource include all, except * a. Obligation to provide services b. Obligation to pay cash c. Obligation to transfer an economic resource even if a specified future event does not occur d. Obligation to deliver goods 3. Which is not a purpose of the Conceptual Framework? * a. To assist accountants in selecting among alternative accounting and reporting methods. b. To provide definitions of key terms and concepts. c. To assist IASB in the standard-setting process. d. To provide specific guidelines for resolving situations not…Which capital investment methods require the use of a present value table? Payback and net present value Internal rate of return and net present value Payback and internal rate of return Accounting rate of return and internal rate of return Accounting rate of return and net present value