Is the use of PE multiple significant in order to understand the value of a firm?

Q: Do firms have any responsibilities to society atlarge?

A: The answer is Yes, firms have a lot of responsibilities to the society. Also, small businesses still…

Q: Human Capital and how it may be acquired

A: Human capital consists of the knowledge, skills and health that people invest  and accumulate…

Q: How might operating leverage impact a companys decision making process?

A: Decision making process -Decisions must be made on a regular basis by managers to address issues.…

Q: What's the meaning of this quote “Entrepreneurship is the pursuit of opportunity without regard to…

A: Entrepreneurship: Entrepreneurship refers to the process of arranging the required resources and…

Q: Dylan purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: What kind of model is often used by the investment companies?

A: INTRODUCTION Investment companies are those companies which provide advisory services to their…

Q: Why must managers be aware of a firm's external environment?

A: The external environment refers to all the factors, forces, and conditions outside an organization…

Q: What value would a discussion of the profitability index add to a conversation where you are trying…

A: Net Present value of a project is the sum of the present value of all the cash inflows and outflows.…

Q: Can you please give some examples of firms whereby a positive relationship exists between operating…

A: Leverage: The term leverage, in general, refers to a relationship between two interrelated…

Q: networks? are these methods appropriate or possibly

A: As existing networks mature and change, new networks emerge, and value is demonstrated, social…

Q: up between owners and managers and how

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

Q: How are high-context and low-context cultures different? Which of these is the best culture for…

A: Communication is a process of exchange of ideas, thoughts, information’s from one person to another…

Q: is an information system specialty providing information about a firm to users of that information…

A: A decision support system analyzes large amounts of data, and compiling them into comprehensive…

Q: What is return on marketing investment (rOMI)? howdoes considering marketing as an investment…

A: Return on marketing expenditure, or ROMI, is an indicator utilized to evaluate the success of a…

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: e DuPont identity a valuable tool for analyzing the performance of a firm? Discuss the types of…

A: DuPont is very important concept in the equity analysis.

Q: s maximizing the value of the firm an appropriate goal

A: Value of the firm is the net worth of the firm. Value of a firm can be calculated by summing up the…

Q: What challenges does functional diversity represent for the business environment?

A: Introduction: A business environment is a confluence of internal and external elements and forces…

Q: If a company is looking for an investment opportunity, they should be able to demonstrate how they…

A: Management of Finance Financial management is described as the efficient and effective…

Q: What are the relationships between Enterprise / Equity Values and the DCF Approach

A: DCF approach: It is the model in which the net present value of all the cash to be received in the…

Q: To what extent tell that a firm should ignore the objectives of multi-stakeholders?

A: A multi-stakeholder body’s mission is to secure and facilitate stakeholder participation, input, and…

Q: Should firms behave ethically?

A: In order to survive in the competitive market for a very long period of time the business firms are…

Q: One way that organisations compete is through technological innovation. However, there can be…

A: Technological Innovation is when a company uses technology to get a competitive edge compared to…

Q: Which of the following is the overarching principle that a financial manag should follow when making…

A: The principle "Decisions should increase the value of the firm to its investors" aligns with the…

Q: The firm takes into account the timing of a transaction whether it is advantageous or not to the…

A: SAVANT is an acronym for – Strategy, Anticipation, Value adding, Negotiation and transformation. It…

Q: B. Why is it important for businesses to apply the GST principles of "Networking"; "Attractors" and…

A: The word classification means classified according to classes or types. The indirect tax system…

Q: Does the successful investment decision increase a company's market value?

A: Meaning of Market Value of a Company The value of a company in connection with the financial markets…

Q: What factors reduce the effectiveness of companies business plan

A: A business plan is a written document that explains all the things about business objectives and how…

Q: How does the ESKOM operate and what is its competitive strategy?

A: ESKOM is a South African power utility company responsible for generating, transmitting and…

Q: What would be the business expectations when working with the added offer?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What is the objective of the firm?  Why?

A: Business firm are defined as the combination of the financial, physical, and the manpower resources,…

Q: How does the value of a levered firm compare to the value of anunlevered firm that is otherwise…

A: When the company having debt in its capital structure it is referred to as a levered firm. When the…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.