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

Q: What are the difference between intrapreneurship and entrepreneurship

A: Entrepreneurship means the willingness of an individual to start a business and undertake the risk.…

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 do companies add value, and what arethe dimensions of performance that customersare expecting of…

A: Step 1: The companies may add through the following things: Research and development, Proper…

Q: Explain the following statement: The optimal financial policy depends in an important way on the…

A: The easy it will be to sell an asset for generating cash, the more it will be feasible to utilize…

Q: up between owners and managers and how

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

Q: Which of the following is Return on equity. O Economic value. O Market capitalization. O Firm…

A: There are many tools to measure the performance and compare with other firms and that will help in…

Q: How can development projects be differentiated from one another in the marketplace?

A: How development projects are distinguished from one another in the marketplace:  Business designers…

Q: Why is FCF an important determinant of a firm’s value?

A: The cash available with a firm after paying operating expenses and capital expenditure of the firm…

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 present value one of the most useful concepts in making business decisions?

A: Present value is a concept that assumes that a rate of return could be earned on the funds over the…

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: 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: 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 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 financial synergy impact the firm's value

A: Financial Synergies: Financial Synergy happens at the joining of two businesses increases financial…

Q: financial factors that the firm should consider in the decision making process?

A: Quality is a very important aspect in the process of manufacture as brand and goodwill is created by…

Q: Does the Profitability Analysis play an important role in decision making? How?

A: Yes, Profitability analysis helps the decision-maker in making decisions as it helps in the…

Q: What does the term “value of an unlevered firm” mean?

A: A firm is an organization that sells or produces something or that offers a service.

Q: Should a firm’s managers help investors improve their estimates of the firm’s intrinsicvalue?…

A: Introduction: Intrinsic value is nothing but the stock’s approximate market worth, extracted from…

Q: often defined as maximizing the va

A: Solution Concept The main objective of business               The business is carried out with a…

Q: what is entrepreneurship? Disscuss

A: Entrepreneur  An entrepreneur is a person or a business that innovates and develops new goods and…

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.