What are the main hindrances in valuation estimates in business valuati

Q: Often the most direct route to a business decision is an incremental analysis. What is meant by an…

A: Incremental analysis Incremental analysis is a technique used by business for better decision…

Q: Explain when diversification is an effective business strategy.

A: Diversification, simply, means to increase profit by higher sales through a new variety of products…

Q: Which factors are not covered in Peters' analysis?

A: Customer growth stems from when customer-centric companies use successful customer engagement…

Q: How do the DuPont technique helps the firm’s managers to further analyze its returns?

A: DuPont analysis is referred to as the framework regarding the analysis of the fundamental…

Q: What are the elements of uncertainty for internal shareholders that remain or are introduced when…

A: elements of uncertainty for internal shareholders  are discussed below

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: Which of the following is a basic limitation associated with ratio analysis

A: Ratio Analysis is very helpful in analyzing the balance sheet and income statement items and…

Q: 'Market structures are often criticised for being too unrealistic in their assumptions of how firms…

A: Answer:-  Market structure meaning:- In economics, the market structure describes how the businesses…

Q: why is profit maximization supposedly not the most important goal of a company

A: Profit Maximization: The process of raising the profit earning capacity of the business is known as…

Q: What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: New entrants are attracted when the organizations’ profits are well in excess of the cost of…

A: In today's world of finance and commerce barriers to entry is a very strong force that determines…

Q: The amount and trend in gross profit is closely monitered by management in assessing the…

A: Gross Profit = Total Sales revenue - Cost of Goods sold Net Profit = Gross Profit - Operating…

Q: Assuming you have done the financial ratio analysis and you have realized that profitability is…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS   After looking at the case study, there is a lot of…

Q: up between owners and managers and how

A: Profit maximization and value maximization are two financial management approaches that define the…

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: From a financial management perspective, when would it make sense to (a) invest in additional…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: Accounting Just because the gross profit margin is positive does not mean that a company will be…

A: Ratio analysis is a tool that establishes a relationship between the different items. It is used to…

Q: Why might an analyst be interested in examining the earnings persistence of a company?

A: Earnings persistence can be defined as the continuity and longevity of the potential earnings, which…

Q: How can you estimate the business risk of a firm?

A: Beta is the systematic risk. As a company opts to make decision to the best of interest, it is…

Q: Why do you think companies use revenue recognition as a primary means for inflating profits?

A: Revenue Recognition: Revenue recognition is the recording of revenues in the books of the company…

Q: Why do you believe businesses rely heavily on revenue recognition to inflate profits

A: Here is the Answer

Q: From a strategic management perspective, the primary reason a firm performs CVP analysis is to find…

A: CVP Analysis: CVP analysis is used to determined the how the changes in volume and costs effect the…

Q: Do normal valuation metrics work like P/E, P/B etc., in tech companies or do investment bankers…

A: A startup is a firm that is in its early phases of operation.  These businesses usually start with…

Q: Which of the following statements about fundamental analysis is least likely accurate? a. It…

A: Fundamental analysis is an essential analysis technique used to analyse business and it's value.

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: What can you say about the market value of the company? is it positve or is negative?

A: In finance market value of a company is the worth of the company and the worth of the company is…

Q: To compete successfully for the better stockholders and better lenders, a business would need: Good…

A: Financial ratios assist investors and lenders in deciding which companies to invest in or lend to.…

Q: How might a statement ofcash flows help a turnaround expert decide how to rescue a struggling…

A: Cash flow statement is a statement indicating the inflows and outflows of cash in an…

Q: What does the term hedging mean? Why do companies elect to follow this strategy?

A:

Q: Questions: Does a low return on sales indicate a weak company? (Y/N). Explain your answer. Do…

A: Multi Step statement of comprehensive income shows all incomes and all expenses of the business at…

Q: To evaluate a company’s performance, investors need a benchmark to which they can compare its…

A: Financial ratio is defined as an accounting ratio, which used to choose two main numerical value for…

Q: Why is the profit maximization supposed not the most important goal of the company?

A: Solution Profit maximization is a process business firms undergo to ensure the best output and price…

Q: The PE ratio is a very common method used by investors to get a quick calculation on the market’s…

A: P/E ratio is one of most common methods of valuation of company and P/E ratio compare price of stock…

Q: B) The C.E.O. explains that the company is facing severe competition in the market place and has…

A: CVP Analysis: When it comes to cost-volume-profit (CVP) analysis, it is a method of determining how…

Q: Profit maximization pupose cannot be an ideal basis for making business decision because of…

A: Profit maximization cannot be an ideal basis for making business decision because It focuses only on…

Q: PLEASE IDENTIFY AN ORGANIZATION If a firm is performing poorly financially, what might this say…

A: The organization which conducts any business activities have their strategies. The business entity…

Q: Why would a company’s manager be concerned about the quantity of its purchases returns if its…

A: Purchase returns means return of merchandise to the suppliers or vendors due to low quality or any…

Q: t are the main hindrances in valuation estimates in business valuation?

A: Knowing how much an asset is worth and what factors influence its value is essential for making…