Use the docmposed ROE framework to provide possible reasons for this difference based on the figure on the table below:

Q: Explain the advantage of modified breakeven analysis over the basic breakeven formula.

A: A break-even analysis is a key calculation that compares the startup costs of a new firm, service,…

Q: In general terms, how does IFRS for SMEs differ from full IFRS?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: describe tools and techniques used in fi nancial analysis, including their uses and limitations;

A: Financial analysis can be defined as the evaluation of the profitability, durability and feasibility…

Q: What is meant by the term antidilution? Give an example.

A: An increase in the earnings per share refers to anti-dilution. This results on account of the…

Q: Answer asap please,   With the use of examples, differentiate between: Theoretical expertise and…

A: Sharing and rapid knowledge growth are made easier by information technology. Information technology…

Q: difference between ABC method and traditional method

A: Solution:- The following differences between ABC method and traditional method as follows under:-

Q: Discuss the different variables of CAPM. What are the benefits and limitations of the CAPM?

A:

Q: List several potential difficulties with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: ifference between ABC method and conventional method

A: Solution:- The following differences between ABC method and conventional method (Traditional method)…

Q: explain the meaning of permanent differences, and give two other examples

A: The periods between which revenues and expenses are reported for financial statement and income tax…

Q: What are the various levels of aggregation to which the LCNRV and LCM approaches can be applied?

A: LCNRV (Lower of Cost or Net Realizable Value) approach:   It is an approach that compares the cost…

Q: Describe standards for comparisons in analysis.

A: Financial statement analysis: Financial statement analysis is a valuable measure for evaluating…

Q: What are the differences among the three forms of the EMH?

A: EMH refers to efficient market hypothesis.  The differences among the three forms of the EMH are:

Q: What are the two inputs required in the preparation of the pro forma statements?

A: Pro forma financial statements are reports that are formed based on hypothetical situations in the…

Q: What are two advantages of ADR? List and provide an example for each.

A: ADR refers to the American Depositary Receipt. ADR is a negotiable certificate which represents a…

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: IRR analysis is based on the

A: IRR (internal rate of return) is one of the capital budgeting techniques that is used in order to…

Q: For practical applicationsas opposed to theoretical considerations, which ismore relevant, the CML…

A: Security market line (SML) or Capital market line (CML): The capital market line appears the…

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: describe the steps in the fi nancial statement analysis framework.

A: Introduction: The analysis of financial statements refers to the method of reviewing and evaluating…

Q: Describe techniques of comparative analysis.

A: Comparative analysis of a financial statement helps the potential investors and stakeholders to…

Q: Mention and describe some FASB concepts, principles, standards, and rules and how they differ from…

A: Given: The concept of FASB and their differences.

Q: or working for NPV and EAA calculation?

A: EAA is calculated as shown below. EAA=NPV×r1-11+rnHere,Cost of capital/ WACC=rLife of project=n

Q: describe the main differences between Vertical and Horizontal Analysis.

A: Vertical Analysis: In financial statements, vertical analysis refers to the approach of assessing…

Q: What is multiple discriminant analysis?

A: Multiple discriminant analysis (MDA) is a statistical method used by many financial planners to…

Q: Do equivalence calculations require a common time basis for comparison?

A: Answer: The calculation of equivalence method is used where duration of the projects is not equal.…

Q: Explain the spectrum of INTEREST, including all the terms used and their various differences.

A: Interest rate is the rate a lender charges on the borrowed fund or principal amount. It is mentioned…

Q: Provide worded problem about compound interest

A:

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.