Why Does Equity have a Cost

Managers explain and voluntarily disclose the forecasted financial information to the external financial users at the beginning of the period. The purpose to provide the forecasted financial information is to help the external investors interpret managers’ forecasted earnings by examining the profitability of the firm when the investors forecast the earnings and make investment decision.Discuss the extent to which you agree/disagree with that trend? You should support your reasoning with example(s).

Which of the following is NOT a common element among financial planning models? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Asset requirements b с d e Stock split forecasts Pro forma statements Sales forecasts Economic assumptions

Discuss your assumptions on the key factors such as industry characteristics, firm characteristics, sales growth, profit margin, dividend policy, asset requirement, and leverage. How do these factors affect your forecasting of financial statements? And discuss why the circular reference occurs between the proforma income statement and balance sheet in your forecasting model?

When analyzing financial statements, besides reviewing data year over year for comparisons, the analyst should also compare the data to the S&P 500 Group of answer choices True False

1) Do you feel about using financial statement analysis to evaluate an organization’s performance? 2) What are your view on analyzing investments using the equity methodology vs the market-value? 3) Are there any segments in chapter which are still unclear to you?

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Discuss the major methods of a company valuation. In doing so, explain each method and compare their advantages and disadvantages with the other methods you choose to discuss Discuss the above based on the following: Explain the market capitalization. Explain the book value. Explain (expected) future earnings. Provide a narrative on other methods (minimum of two). Compare market capitalization, book value, and future earnings methods (and your other chosen methods) with each other to include their advantages and disadvantages.

1. What is an investor’s objective in financial statement analysis? a. To determine if the firm is risky b. To determine the stability of earnings. c. To determine changes necessary to improve future performance d. To determine whether or not an investment is warranted by estimating a company’s future earnings stream   2. The current ratio isa. calculated by dividing current liabilities by current assets. b. used to evaluate a company's liquidity and short-term debt paying ability c. used to evaluate a company's solvency and long-term debt paying ability. d. calculated by subtracting current liabilities from current assets.

What is the recommendations to Amazon on how to improve its financial performancefor the future.What is the decision on whether to invest or not in this company with supportinginformation based on the financial analysis completed.

Describe why an Investor would use Profitability Ratio’s? What are the following ratio's measuring (i) Return on Assets, (ii) Return on Equity, (iii) Profit Margin. Describe why a CEO would use Activity Ratio’s? What are the following ratio’s measuring (i) Days Receivables Outstanding, (ii) Inventory Turnover. Describe why a Bank would use Solvency Ratio’s? What are the following ratio’s measuring (i) Current Ratio, (ii) Acid-Test, (iii) Debt Ratio, (iv) Debt to Equity Ratio, Times Interest Earned ratio

A friend who knows you study accounting approaches you to discuss share market investment strategies. They believe deciding which shares to invest in should be based solely on understanding the business model and reading analyst forecasts regarding the company. Is this strategy sound? Why or why not? What other approaches or tools would you recommend to assist in making investment decisions? Discuss.

What is the role of accounting in an efficient market?   Is it worth investing the time and money to beat the market?  Does it help to conduct financial statement analysis?  Should market be timed?

An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on which fi nancial statement? B . Income statement.

Tabulate and explain each drivers that affect the financial market and identify the risks that may arise.   1. Competiveness   2. Market Behavior   3. Consistency   4. Stability

Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures   Computations Working capital   $3,095,000 – $900,000  Current ratio   $3,095,000 ÷ $900,000  Quick ratio   $1,866,000 ÷ $900,000  Accounts receivable turnover   $8,280,000 ÷ [($714,000 + $740,000) ÷ 2]  Number  of days' sales in receivables   [($714,000 + $740,000) ÷ 2] ÷ ($8,280,000 ÷ 365)  Inventory turnover   $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2]  Number of days' sales in inventory…

Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures   Computations Working capital   $3,095,000 – $860,000  Current ratio   $3,095,000 ÷ $860,000  Quick ratio   $1,866,000 ÷ $860,000  Accounts receivable turnover   $8,250,000 ÷ [($714,000 + $740,000) ÷ 2]  Number  of days' sales in receivables   [($714,000 + $740,000) ÷ 2] ÷ ($8,250,000 ÷ 365)  Inventory turnover   $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 2]  Number of days' sales in inventory…

Which of the following statementsregarding the importance or information provided by accounting to investors and creditors is Nor correct? It helps investors and creditors assess the relative risks and returns of investment opportunities. It allows investors and creditors to compare income and assets of companies. It determines the share prices and lending portfolios for investors and creditors. It helps investors and creditors channel their resources more effectively.

Please see below. Be sure to include an explanation as well. If you were a user of financial statements, what type of ratio/analysis do you think would be most important to use to make sure the company you have invested in is doing well?  What would you look for in a company that you were considering investing in?

__________ focus more on underlying determinants of future profitability than the past price movements of a firm's stock. A) Credit analysts B) Fundamental analysts C) Systems analysts D) Technical analysts Please provide an accurate answer.

not use ai please

Define financial statement analysis and how do users use liquidity and efficiency, solvency, profitability, and market prospect? In other words are are the building blocks of analysis used?

Statement 1: Fundamental analysis believe that the historical performance of the stocks and markets areindications of future performanceStatement 2: Fundamental analysis works best in determining market sentiment and factor in the creation ofinvestment or trading decisionsStatement 3: Fundamental analysis will succeed if the analyst finds overlooked data in identifying undervaluedsecuritiesStatement 4: Fundamental analysis works best if all investors are logical and could separate emotions frominvestment decision.Statement 5: Fundamental analysis use charts and patterns that can suggest future activity and to measure asecurity’s intrinsic value.a. Only statements 1 and 3 are correct b. Only statements 2 and 4 are correct c. Only statements 1 and 2 are correct d. Only statements 3 and 4 are correct