Briefly explain the difference between liquidity, solvency, and profitability analysis.

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: what is risk and return in the context of financial decision making?

A: Risk and return are two very important concept used in any financial decision making. Two financial…

Q: Describe Asset/Liability Models and explain why it is better than Value-at-Risk Models for Portfolio…

A: The process through the use of assets and liabilities are managed in such a way that the risk of…

Q: Describe about the cash flow risk.

A: Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a…

Q: Describe the difference between business risk and financial risk using appropriate example

A: Business risk refers to the potential for a company to experience a loss or lower profits due to…

Q: What is the use and purpose of Financial Performance Measures and Non-financial Performance…

A: Although financial indicators are vital for performance evaluation, many businesses utilize a…

Q: Where are Financial costs and Dividends considered in a scenario analysis? Just a simple answer

A: Introduction :  A scenario analysis is a tool used to assess the potential outcomes of a given…

Q: Explain the importance of financial ratio analysis as a tool of appraising project

A: Company would be comparing the performances on a regular basis at the end of year or at the end of…

Q: List and compare all advantages and disadvantages of Payback Period Rule, Average Accounting Return,…

A: Payback rule: The Payback period is the length of time required to recover the initial cost of a…

Q: What is Horizontal Analysis in Financial Analysis?

A: Financial statement analysis is the process of analyzing the financial statements of a company. It…

Q: Define cash flow hedges.

A: Derivatives:   Derivative is a product whose value is derived from underlying assets called base.…

Q: Present the Capital Asset Pricing Model (CAPM) and discuss how the  theoretical model is made…

A: The capital asset pricing model (CAPM) gives a straight line to relate the systematic risk in terms…

Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…

A: SOLUTION A- Relation between profitability and efficiency ratios   Profitability ratio depicts how…

Q: Explain the term Financing activities with an example?

A: Financing activities :

Q: Drw a Cash flow diagram for comparing cost-only?

A: Initial costs  The occurrence of cost at the time of design and the construction of the project.…

Q: Who is responsible fir underlying determinants of future profitability? 1. Credit Analyst 2.…

A: Future Profitability is calculated by assessing the future probability of a particular stock under…

Q: What do we mean by a cash flow diagram?

A: Cash is the most important asset for an organisation. The receipt and payment of cash during an…

Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…

A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…

Q: Discuss cost-benefit analysis and financial analysis tools

A: Answer: Cost-benefit analysis: It is nothing but a process of decision making that balances the…

Q: lain the relationship between return on equity (ROE), return on asset (ROA), and leverage effect.…

A: Return on equity and return on assets shows how much is the profit earned by the company and are…

Q: Controls that measure variables that influence future profitability are called Select one: a. output…

A: Controls are necessary part to see whether the plans are going as per direction or not. The controls…

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: Explain briefly what working capital and working capital management are and what they do. Explain…

A: The financial Ratios will be calculated by taking the numerical values that are taken from the…

Q: What methods could be used in profit planning?

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

Q: hat's the importance of considering the audience for financial statement analys

A: When you publish anything you must guarantee that what you want to say is passed properly and proper…

Q: Discuss the importance and differences of liquidity, solvency and profitability.

A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…

Q: Analyze the disadvantages of financial performance measures and the advantages of non

A: Disadvantages of financial performance measures  1 They indicates short term performance measures. 2…

Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…

A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…

Q: what is meant by Profit and Cashflow and how they are different?

A: Each and every business organization deals in either goods or offering services to their customers…

Q: Leverage and its use in financial decision making.

A: Leverage analysis means arrangement of fixed assets in such a form or way that future fixed return…

Q: What is Basic Calculations of Financial Leverage?  Please provide example.

A: Financial Leverage:It represents that how a company uses its debt to acquire assets. It also shows…

Q: Explain how managerial finance function relates to Economics.

A: Managerial finance is referred as the part of finance which considers the managerial application of…