The fee paid to the underwriter is called the a. tactical spread. b. gross spread. c. net spread. d. listing fee. e. banking fee

Q: How do you compute the receivables turnover ratio?

A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…

Q: Increasing interest expense will have what effect on EBIT?

A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…

Q: Which of the following is not true? a. Coverage ratio provides information about borrowed funds…

A: concept. Ratio analysis. Ratio analysis is done to form opinion  regarding various aspects of…

Q: hat about an income statement and a CVP Income statement?

A: An income statement is a form of computation of net income after deducting expenses from revenue.…

Q: What is market/book (M/B) ratio?

A: Introduction: Market value is nothing but the value derived when the stock price is multiplied by…

Q: The CAPM model can be used to derive the cost сapital. A. Equity B. Borrowed С. Total D. Unlimited

A: The CAPM (capital assets pricing model) is a technique that helps to derive the cost of capital with…

Q: what is net purchases? Is there another term for it?

A: Net purchases is an important metric in accounting because it is used to calculate the cost of goods…

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: variables cost

A: Variable cost is the cost that change according to sale or production volume.

Q: Debt-equity ratio is a sub-part of Select one: a. Liquidity ratio b. Solvency ratio c. Profitability…

A: EXPLNANTION:- The debt-equity ratio is an indicator of the lenders' and stockholders' or owners'…

Q: Explain price/cash flow ratio

A: Answer: Price to cash flow is determined through the division of price per share by cash flow per…

Q: Compute accounting rate of return and explain its use.

A: Accounting rate of return in simple terms is an average rate of return of return from an investment.…

Q: Which of the following best describes revenue?

A: In simple accounting term revenue is the amount which company earn by selling goods or providing…

Q: Describe the difference between a trade discount and a cash discount.

A: Discounts are essential in commercial transactions because they affect buyers' decisions and help…

Q: Explain the difference between a trade discount and a cash discount.

A: Discount is the deduction from the cost of product or service that a seller offers to the buyer…

Q: Define Net purchases.

A: Purchase discounts: The sellers offer a reduction in purchase price on initial purchases, to…

Q: Describe the format used to report the components of net income.

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Q: Discuss theissues involved in managing returns.

A: In business scenario, returns and allowances are frequent and common place events. An entity…

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: Define Trade discounts.

A: Business:   It refers to a commercial activity involving buying and selling of a product or a…

Q: Define Sales revenue.

A:

Q: Discuss the following models in relation to purchasing power parity.

A: Comparative rates of inflation in different countries are the factors influencing the exchange rate.…

Q: Explain Pass-Through Rates, Yields, and Servicing Fee?

A: Pass-through rateA rate of interest being paid to the investors on the securitized asset after…

Q: Explain how the concept of comparable risk is incorporated into the discount rate.

A: The concept of comparable risk is fundamental to determining the appropriate discount rate to use…

Q: What do you understand the vertical and horizontal income statement account and balance sheet…

A: The financial statement contains both income statement and balance that are very useful for users'…

Q: Define discount percentage (credit)

A: The discount rate is the amount paid on debit and credit card payments to a dealer for payment…

Q: Define the term financial ratio.

A: Financial ratio: The financial ratio is used to determine the performance of the business by…

Q: Why is profit shown on liabilities side?

A: This is because of separate entity principle of accounting which says that the owner and business…

Q: Define net income and explain its computation.

A: Net income is the amount of income which is left over revenue after all the expenses have been…

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…