1. What is the controllable margin of Black Company? 2. What is the average operating assets of Black Company?

Q: Which of the following is the impact of agency cost?

A: Agency costs are internal costs incurred due to the competing interests of Shareholder i.e the…

Q: Explain the Limitations of Financial Ratios in Business Decisions?

A: Financial ratios are very useful in showing the relationship between the items within the financial…

Q: price-earnings ratio that is higher than other similar firms

A: A high price-earning ratio implies more price has to be paid for acquiring the stocks of the firm…

Q: 3. How does operating leverage impact the operating risk and profit levels of a company?

A: Operating leverage measures the percentage increase in operating income which is a result of change…

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: Briefly explain the internal characteristics that influence the rate of return for a company.

A: The rate of return is the discount rate that is the minimum rate of return which should be achieved.…

Q: A company that reached operating breakeven was able to cover:  a) the cost of equity b) the costs…

A: In case of a company which has reached its operating break even point it able to recover the…

Q: Describe the earning power of a company.

A: Earnings power of a firm: It could be a metric that transmits the capacity of a company to create a…

Q: What is the importance of a pro forma income statement to a firm?

A: Pro forma is referred as the sake of form. It is used to represent the information in a formal…

Q: 3. How do earnings management practices affect the quality of earnings?

A: Earnings quality:   The term earnings quality considers whether the earnings of the company are…

Q: write Advantages and Disadvantages of. Residual Dividend Model by an organization.

A: Residual dividend policy is the policy in which the earnings of the company are first used for the…

Q: The ability of a company to meet its long-term obligations is termed: A) Profitability B) Solvency…

A: As we basically know that ,there are different types of companies are formed, some of them are ,…

Q: Analyze the impact of external factors (i.e., external to the company) on a company’s financial…

A: PESTEL analysis is one of the most important tools used by businesses to understand the industry and…

Q: How does depletion accounting impact a company's financial statements?

A: Depletion accounting is an accounting method used by companies that extract natural resources, such…

Q: How do we use Ratios to Make Business Decisions?

A: Ratios are helpful to evaluate the company's financial performances and financial position of the…

Q: What does it mean if the companies operating leverage is higher or lower than another company!

A: Operating leverage is used to determine the efficiency of the firm to utilize fixed operating…

Q: What are the Limitations of Financial Ratios in Business Decisions?

A: Limitations of Financial Ratios in Business Decisions are as follows: Firms operating in various…

Q: What is the difference between liquidity and solvency?

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

Q: What is the cost of equity in the levered company

A: A levered company has a mix of debt and equity in its capital structure. The company that obtains…

Q: What is E&P and how is it different than a company's net income?

A: E&P stands for "Earnings and Profits" and is a tax concept used by the Internal Revenue Service…

Q: Financial analysis considers the profitability, liabilities and other financial capacities of a…

A: Financial analysis of a company certainly looks into the profitability, debt levels and other key…

Q: How can we n determine the net income (profits) of the firm mainly for the operating activities?

A: Statement of cash flows: It is one of the financial statements that show the cash and cash…

Q: How stable are the company’s operations?

A: The cash flow statement is a record of the use and source of cash available for the firm during a…

Q: What are some factors that influence: (1) a firm’sreceivables level and (2) the dollar cost of…

A: The term receivables in the finance perspective refers to the payment that has not been realized by…

Q: For example, how does understanding profit and loss impact your perspective on operating a company?

A: Knowledge of profit and loss while operating a company is critical to the success of the enterprise.

Q: Explain oF preparing what are the costs the Financiad inform

A: Financial reporting is the transmission of a commercial enterprise's published financial statements…

Q: Explain how a company can be “profit rich, yet cash poor.”

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: what do you think is the significance of Earnings Per Share (EPS) especially in measuring the…

A: Earnings per share or EPS is an important financial measure, which indicates the profitability of a…

Q: can you please explain this and provide an example its for homework I am struggling

A: Horizontal analysis of the company shows increase or decrease in  figures over the two periods in…

Q: Q.items that are the same in the balance sheet of abank and atypical company.

A: Balance sheet is the statement which is prepared after income statement. It is a statement which…

Q: 1. What are the two fundamental types of business transactions? How are they interconnected and how…

A: As per the guideline, I am only going to solve the first three questions for the rest please…

Q: How can factoring help a company manage itscash flow?

A: Sales means delivery of goods and services by the seller. It can be for cash sales or sales made on…

Q: What is the implication of managerial entrenchment: should company favor debt or equity? Why?

A: Managerial entrenchment theory-says that allotment of shares inside the organization such as…

Q: What does ‘ROCE’, EPS and P/E ratios and why are they important to a business entity?

A: ROCE means Return on Capital Employed. EPS means Earnings Per Share. P/E ratio means Price Earnings…

Q: What does capital structure of a company means?

A: Capital structure of a company is the proportion of various long term sources of finance used to…

Q: Question :- Can the financial health of a firm be based off of one ratio? Why or why not? How do you…

A:

Q: Briefly describe the external characteristics that influence the rate of return for a company.

A: The rate of return for a company is the net gain or loss a project generates over the period of…

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: Assets are the resources of a company and are expected to yield future benefits.  Group of answer…

A: The resource is an item that can be used in the business to generate profits and revenues.