Which of the following item is not used in equity-based valuation models? Select one: a. Working capital b. Dividends c. Earnings d. Cash flows

Q: According to financial bep, what is the position of bep, what will be the operation if there is only…

A: Financial break even point is a point where earnings before income tax is equal to financial cost of…

Q: Which of the following shows the effects of paying a cash dividend on the accounting equation?…

A: When cash dividend is paid the following accounts are affected: Cash will reduce with the amount of…

Q: The two main approaches to equity analysis are the relative valuation models and…

A: Equity valuation is used by analysts to evaluate or analyze a company or a group of companies by…

Q: The return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio.…

A: Return of assets calculates the amount of profit generated on the amount of assets invested.

Q: What do capital markets emphasize? a) Short term performance b) Earnings c) Both A and B d) Neither…

A: Capital Market: It is the  financial market  where  long-term debt or equity-backed securities are…

Q: (D/D+E)kd(1-T) + (E/D+E)k2 is also known as

A: The answer and the explanation is provided below:

Q: 2. Is it possible to prepare Statement of Changes in Equity first prior to other financial…

A: Statement of changes in equity is one of the financial statement of business, which shows all…

Q: What is the value of equity? And how to answer that question with only information on assets and…

A: Valuation is referred as the quantitative method to estimate the fair value of an assets or a…

Q: a) Assume the euro's spot price at the expiration date (market price) is *123/€ The investor's…

A: A put option starts making profit when the spot price at expiry is below the strike price. The value…

Q: In the Statement of Changes in Equity, the result from the Statement of Profit or Loss is always…

A: The income statement is prepared to find the profit or net loss incurred during the period.

Q: The expected return on a stock is called the __ from the investor's perspective, and the __ from the…

A: The expected return for the stock is an important concept. To calculate the expected return for the…

Q: Other than CAPM what other model can be used in valuing equity and WACC. Also list the assumptions…

A: The financial information can be analysed and presented using various types of models and frameworks…

Q: Comprehensive income includes the following items, except:  Select one: a.  Deferred gains or…

A: Definition: Comprehensive income: The change that occurs in the equity of a company from other…

Q: Which Accounting Principle is Applied for "Closing stock is valued at lower of cost or market price"…

A: Accounting principles are the defined rules which are required to be followed by each company and…

Q: Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock?…

A: Cash flow is a statement that provide  data regarding cash inflow and cash outflow of the company…

Q: Explain the four main equity valuation ratios where “Price” is the numer-ator. Give one positive AND…

A: solution the four equity valuation ratios where “Price” is the numerator are a)price-earnings (P/E)…

Q: 1  Earning basis  2. Dividend growth valuation   3. Capital asset pricing method Required…

A: I have explained all the three methods one by one in the next sheet

Q: Which of the following is not popular in the present business scenario? O a. None of the options O…

A: Business can be defined as the organization or entity  that is engaged in commercial, professional,…

Q: 7. (a) When should a long-term investment in common stock be accounted for by the equity method? (b)…

A: Long-term investment is considered as equity method when the investor company owns 20–50 percent of…

Q: Commodities of broker-traders are measured at *

A: As per IAS 2 Inventories, this standard has some exceptions. One such exception is commodity…

Q: 2. The basic tools in financial statement analysis include a. Horizontal analysis b. Vertical…

A: Income statement: The income statement is one of the three primary financial statements used to…

Q: ere are two concepts in respect of working capital Select one: a. None of the options b. Cost of…

A: Working capital represents the variance between all the current assets and current liabilities of a…

Q: ded in the following forms except for   a. Original capital b. Weighted average of the capital

A: The correct answer is option b. Weighted average of the capital

Q: What does the market value of debt and equity refer to? O A. The values at which debt and equity are…

A: Intrinsic value of an asset is the price which is determined based on the actual financial…

Q: When liabilites increase and stock holder equity decreases, what is the total assets?  shouldn't it…

A: According to the accounting equation, the total of liabilities and the stockholder equity is the…

Q: 1- Examine equity markets 2- Calculate equity valuation 3- Evaluate equity valuation impacts

A: Equity markets are a type of financial market where stocks or shares of publicly traded companies…

Q: What is meant by par value, and what is its significance to stockholders?

A: Par Value Par value is also known as face value. Par value is the value which is mention on the…

Q: Q7 Which of the following has the implicit cost of capital? a. Retained earnings b. Bonds c. Equity…

A: An implicit cost or the imputed cost refers to the opportunity cost that is forgone in order to…

Q: Choose the correct answer:  Equity security acquired for non-trading and the shares are not enough…

A: Solution Concept When there is no significant influence then the investment is financial asset Debt…

Q: Which of the following is a usefulness of the statement of financial position? OA. The use of…

A: For every business, accounting is very important for analysis and evaluation. Accounting is based on…

Q: Explain the fundamental equivalence of valuation based on expected future dividends free cash flows…

A: Introduction: The valuation for dividends, cash flows & earnings generally vary in their own…

Q: An increase in Select one: OA. dividends paid OB. retained earnings O C. OD. will increase common…

A: Common equity is an important indicator of a company's financial health and its ability to withstand…

Q: EBIT is Select one: O a. equity before tax and interest O b. gross profit O c. net profit O d. EBT…

A: EBIT means earnings before interest and taxes. This is an important element of income statement of…

Q: difference b/w creditors and stockholders

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Describe and compare (i) the Simple Earnings Capitalisation Model, (ii) Burgstahler & Dichev's…

A: (i) Simple earnings capitalization model: Simple earnings capitalization model determines the value…

Q: Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks…

A: A stakeholder is defined as a "person or group that has an interest in any decision or action of an…

Q: NPAT Less prefernce dividend is used in  O a. Return on Equity  O b. Return on Equity share…

A: A financial ratio is one of the important tools for analyzing a company’s financial statement. There…

Q: The appropriate benchmark for the return on equity is: A)the weighted average cost of capital.…

A: Total earning of the firm that is held in the hands of shareholders of the company.

Q: Is this a right formula? Market Value of Equity = Market capitalization - cash and investment +…

A: Market value of equity and market capitalization are both same and is calculated as number of shares…

Q: Explain the concept of control and its relationship to ownership percentage

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Which of the following is incorrect? A. Capital + Liabilities = Assets B. Assets - Liabilities =…

A: Every transaction has dual effect on the books of account. The question is from the topic of…

Q: Current assets LESS current liabilities is the *       a. Current Ratio       b. Net Worth Ratio…

A: Current assets  is asset which can be realised in normal operating cycle of business.

Q: 4. There is a difference in return on Total Assets and the return on Total Equity. a. What is the…

A: a. The difference between the return on Total Assets and the return on Total Equity is that the…

Q: Stockholders' equity consists of which of the following? Multiple Choice O O Paid-in (or…

A: Stockholders' equity=Paid in capital+Retained earnings