Give your thoughts on the prompts below  Firms use market capitalization when considering the market value added. We have seen that a number of things can affect capitalization values, so is this really the best method to use?   A well known company recently had  a 20-1 stock split that drew a lot of attention...how does this affect their market value added? Administrative errors can have a big impact in receivables turnover and payment delay ratios, so companies should include administrative and other indirect costs in the calculations of those ratios. Agree or Disagree and defend your answer.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Give your thoughts on the prompts below 

  1. Firms use market capitalization when considering the market value added. We have seen that a number of things can affect capitalization values, so is this really the best method to use?  
  2. A well known company recently had  a 20-1 stock split that drew a lot of attention...how does this affect their market value added?
  3. Administrative errors can have a big impact in receivables turnover and payment delay ratios, so companies should include administrative and other indirect costs in the calculations of those ratios. Agree or Disagree and defend your answer.
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