Combined Ratio of ABC Firm

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: What is par value?

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Define the term Current ratio with example.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: What is market value ratio?

A: Ratio is the relation between two different quantities obtained after dividing one by another.

Q: Contrast term stackholder and stakeholder

A: It is assumed that there is a typo in the question and the question is asking to contrast the term…

Q: what are the three probability ratios equations?

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Briefly describe the connection and the difference between CAPM and Single Index Model (SIM).

A: Capital Asset Pricing Model or CAPM referred to as the relationship between the systematic risk and…

Q: Define capital requirement ratio (CR)

A: Answer: Capital requirements are nothing but regulatory guidelines for banks that specify the amount…

Q: Liquid ratio formula?

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: Explain three (3) advantages for using ratio analysis.

A: Ratio Analysis: It is a tool used to analyze financial statements. The use of accounting ratios…

Q: How do we calculate the quick ratio?

A: Quick ratio: Categorized under liquidity ratio  Quick ratio which helps company to know the it's…

Q: ompare and contrast Liquidity ratio and solvency rati

A: Analysis of the company's financial statements, such as the balance sheet and income statement, can…

Q: How can we obtain an equal-payment series equivalent to the gradient series?

A: The question is based on the concept of gradient series of payments, which is used in equivalent…

Q: Give the formula for EV of a firm.

A: Here EV suggest the enterprise value. Enterprise Value (EV) is an indicator of how the market…

Q: What is the difference between I and G spread measures?

A: The yield spread of the bond reflects the difference between the YTM(Yield to Maturity) of various…

Q: Giving two circumstances in which Gaining ratio may be applied.

A:

Q: What does a high current ratio indicate?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: What is current ratio

A:

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: Calculate the current ratio

A: The current ratio is the ratio of current assets to the current liabilities. It shows the ability of…

Q: Define current ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: What is PV ratio? How do you calculate it?(explain with an example)

A: PV ratio is the ratio that represents the function of sales and contribution. This shows the…

Q: Describe the Incremental B/C-Ratio Analysis?

A: Benefit cost analysis: Benefit cost analysis refers to analyzing the desirability of project where…

Q: Briefly explain capital allocation line (CAL) and security market line(SML)

A: The objective of this question is to understand the concepts of Capital Allocation Line (CAL) and…

Q: What is operating leverage? Give three examples?

A: Operating leverage:

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: P/E Ratios and Bubbles?

A: Price Earning ratio shows the relationship between price of the company's share with Earning per…

Q: liquidity ratio

A: INTRODUCTION   It is a ratio which the capability of a company to pay off its debts as and when they…

Q: explain what is The current ratio with a comprehensive example.

A: The objective of this question is to understand the concept of the current ratio, which is a key…