) explain the important for managers to understand the importance of both the internal growth rate and the sustainable rate of growth.

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: Which two types of investment criteria are most frequently used by managers today? Multiple Choice O…

A: Net Present Value (NPV) is the difference between present value of cash inflows and present value of…

Q: The following are investment criteria: net present value, payback, profitability index, average…

A: The question is based on the concept of capital budgeting techniques , to ascertain the true worth…

Q: Why is it critical to examine profitability, with a particular emphasis on return on investment?…

A: Introduction: The term profitability refers to a profit-measurement metric. An analysis is performed…

Q: up between owners and managers and how

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

Q: Who is responsible fir underlying determinants of future profitability? 1. Credit Analyst 2.…

A: Future Profitability is calculated by assessing the future probability of a particular stock under…

Q: how to assess a company's success in using leverage to increase returns?

A: Leverage refers to the risk involved and the borrowed capital that is used to undertake a project…

Q: Evaluate the following statement: Do the ends of positive organizational consequences justify the…

A: Earning management is an accounting device that is used to produce the economic statements showing…

Q: how present value is useful in economic decision making

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: What is "value-minus-growth" meaning? and how is it calculated? please explain in detail this…

A: One of the three factors in a Fama-French Model is HML (high minus low) or Value minus growth. As…

Q: What do you think is the importance of Economic Development in relation to the field of study…

A: Accounting plays an essential role in the economic development. high quality…

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: How do managers, bankers, and security analysts use (a) trend analysis, (b) benchmarking,(c) percent…

A: Introduction: Usually a managers, bankers, and security analysts use financial tools and techniques…

Q: What is meant by earnings persistence?

A: Earning persistence is one of the attributes of accounting earnings. Basically, it means the…

Q: Why might an analyst incorporate the industry-market-size factor and the interrelationships among…

A: Operating Income: The outcome of deduction of operating expenses and depreciation from the gross…

Q: What are the potential indicators of earnings quality?

A: Some potential indicators of earnings quality are: 1. Unusual or unexpected items included in…

Q: What are the key determinants of an industry's profitability? What do you think is the most…

A: Profit is a very important concept in finance. Companies do business and run their operations in…

Q: Explain the relationship between the weighted average cost of capital (WACC), the maximization of…

A: Optimal capital structure of the firm explains the relationship between the weighted average cost of…

Q: Financial analysts have developed two performance measures: Market Value Added (MVA) and Economic…

A: Financial analysts and companies make use of Market Value Added (MVA) and Economic Value Added (EVA)…

Q: maximization goal?

A: According to standard theory of the firm, profit maximization is taken into account to be the…

Q: what is return on investment capital and profitability analysis?

A: Both return on investment and profitability analysis are  profitability ratios

Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?

A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…