Revenues increase or decrease equity?

Q: What is capital rationing?

A:

Q: What is nonconstant growth model?

A: Definition: The dividend paid to the stockholder is varying continuously at the higher side. The…

Q: What about the recapitalization part in the question? Does that not effect total equity

A: Before recapitalization,the unlevered value of the firm is $500,000,000 or $500 million. Unlevered…

Q: What are the factors favoring a high-dividend policy?

A: Dividend refers to portion of net earnings of the company that is shared with common stock holders…

Q: How much will profit decrease by?

A: Introduction Contribution is calculated by Deducting Variable Cost from Sales. When Fixed Cost is…

Q: risk implications of improving net profit margin to increase Return on Equity?

A: Net profit margin is the percentage of net profit to sales revenue

Q: What is the most likely impact on return on equity of an increase in operating expense margin, all…

A: Operating expenses are required to run the business. AN increase in operating expenses reduces the…

Q: What is the difference of Cost of Equity and the required rate of return on equities?

A: The amount of money that would be transferred to a company's shareholders if all of the company's…

Q: What is capital rationing, what conditions lead toit, and how should it be dealt with?

A: Capital budgeting is a process in which capital projects are assessed in terms of their viability…

Q: What is the accounting rate of return?

A:

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: Define the term Profit margins?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: What are the Factors That Complicate Capital Investment Analysis

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

Q: What caused the increase in liquidity ratios??

A: Liquidity ratios use metrics such as the quick ratio, current ratio, and operating cash flow ratio…

Q: YR 3 (2021) YR 2 (2020) YR 1 (2019) CURRENT RATIO 2.8 2.5 2.0 ACID TEST RATIO 0.7 0.9 1.2 ACCOUNTS…

A: Dividend Yield ratio:               It is the ratio will be used to calculate the ratio 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: Does the concept of revenue less expense equaling an increase in equity or fund balance make sense…

A: The answer for the question on the concept of revenue less expense is discussed hereunder : Every…

Q: In what way are profitability and efficiency related? How are profitability and liquidity related

A: The question explains about profitability and efficiency related and profitability and liquidity…

Q: Why dividen yield ratio increase while dividend payout ratio decrease? please explain in terms of…

A: Dividend Yield ratio:               It is the ratio will be used to calculate the ratio of…

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…

Q: how to calculate the dollar weighted return without excel

A: Data given: Year Cash flow ($) 0 -20000 1 2000 2 -1500 3 22000 Rate=22.76%