why do you think some of the p/e ratios are lower than the others?

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: Why will the standard deviation not be a good measure of risk when returns are negatively skewed

A: The standard deviation of returns is a measure of the volatility of market returns and determines…

Q: What could a drop in the current ratio indicate

A: Solution...     A drop in current ratio indicates

Q: Describe how the FIFO method is different from the weighted-average method.

A: FIFO and weighted average method are the accounting tool for the inventory valuation. Under FIFO,…

Q: ecoral ansactio Ints, Preparing the ance She lai Balan ng the Current Ratio LO2-2, 2-4, 2-5 wing…

A: The ability of a business to pay its short-term financial commitments that are due within a year is…

Q: How the other ratios affects the ROE?

A: Return on equity is used to measure the company’s ability to utilize their assets to generate…

Q: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

Q: What is the put-call ratio? What is it used for? What are considered high and low values and what do…

A: The question is based on the concept for indicators of the stock market performance. The Put-Call…

Q: Current Assets Current Liabilities Case 1 $ 75,000 $30,000

A: Introduction: Current ratio: It tells the ability of the company to pay its short term obligations…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: What is lower of cost/market, and why is it used? Provide an example.

A: Inventory is a term which depicts the amount of finished goods prevailing in the business. The…

Q: general, what does a high Tobin's Q value indicate and how reliable does that value tend to be?

A:

Q: Explain noncumulative pari passu distribution?

A: Pari passu refers to equal footing in Latin. It is the situation where all the stakeholders of the…

Q: What is the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: RATIOS 2021 2020 2019 2018 2017 Key Ratios Debt-to-Equity Ratio 15.2774 36.4745 -118.4352 7.1335…

A: The financial ratios are an important tool to analyze the financial position of the company. The…

Q: Stocks A and B have the following probability distributions of expected future retums: Probability…

A: The expected return of an investment is the anticipated gain or loss from that investment, expressed…

Q: Blossom Company accumulates the following cost and net realizable value data at December 31.…

A: VALUATION OF INVENTORY   Inventory valuation is a practice of accounting which is followed by…

Q: What does a quick ratio show?

A: The study or analysis of the line items in the company's financial statements is known as a ratio.…

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash…

Q: Which of the following statements are true? A. The lower the M-squared the better. B. The higher…

A: higher the sharpe ratio , the better the portfolio is. higher the treynor ratio, the better the…

Q: FINANCIAL RATIOS QUESTION 1 The following financial statements were prepared by the accountants of…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: What is the Decreasing Returns to Scale? Can you please explain and give a definition, thank you.

A: The concept of decreasing return to scale is majorly used in production process and production…

Q: 1. What causes volatility? Explain the basic assumption and research supported view.

A: Volatility is price variability of an asset. Risky assets' prices go up and down and that is called…

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: ut how is this related to CAPM and beta?

A: The Capital asset pricing tells that the how much should be required rate based on the risk of the…

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: Give an example of Mixed-Dollar Analysis?

A: Mixed-Dollar Analysis is commonly known as a currency basket that consists of different currencies…

Q: The production department is proposing the purchase of an automatic insertion machine. It has…

A: The average rate of return is calculated by business entities in order to ascertain the average…

Q: Which is riskier lower IRR or a higher IRR? Please explain and incorporate differences in risk based…

A: According to the internal rate of return (IRR) rule, a project or investment should be undertaken if…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: What type of testing are ratios?

A: Ratio:   It is a number expressed in terms of another to establish a relationship among them.

Q: Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses…

A: Income from house property: The income arising out of a house property either in the form of a…

Q: What are the assumptions and criticisms of Gordon’s model?

A: Gordon's model, also known as the Gordon Growth Model, is a widely used method for valuing stocks.…

Q: What is the difference between arithmetic and geometric mean returns?

A: The difference between arithmetic mean return and geometric mean return is mainly in two aspects…

Q: What is Altman's Z-score and what does it tell you?

A: The Altman Z Score is utilized to forecast the probability that a business will go bankrupt inside…

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: What is the difference between YTD and YoY return? Provide an example

A: In the question they have asked regarding YTD and YOY differences between them so they will be…

Q: an you describe with examples of the advantages and disadvantages of ratio analysis?

A: Ratio Analysis: Ratio analysis is a financial metric used by financial managers for analyzing and…

Q: Explain Key Statistical Relationships between Covariance and Correlation of Returns?

A: Covariance:It is defined as the statistical relationship between stock prices of stock that vary…

Q: Explain the relationship between the conventionaL PW criterion and the B/C ratio?

A: The relationship between the cost of the project and benefits earned from the project is measured by…

Q: percentages?

A: Percentages mean the amount of something, that is being expressed as a number out of 100.…

Q: What is the difference between positive and negative predictive value?

A: Positive predictive value is the probability that subjects with a positive screening test truly have…

Q: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…