What is the difference between I and G spread measures?

Q: How do the Internal-Rate-of-Return Criterion relate to the PW Analysis?

A: Capital budgeting:   It is the process in which the business uses to determine which proposed fixed…

Q: what are the three probability ratios equations?

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Explain positively correlated

A: Positive correlation: It's a connection between two factors that move the two factors pair — that…

Q: What is the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: Explain HPRs and Inflation?

A: Answer: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: What is Altman's Z-score and what does it tell you?

A: The Altman Z Score is utilized to forecast the probability that a business will go bankrupt inside…

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: What is internal rate of return (IRR) method?

A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…

Q: What is the difference between probability and statistics?

A: The problems considered by probability and statistics are inverse to each other. In probability…

Q: Describe the Incremental B/C-Ratio Analysis?

A: Benefit cost analysis: Benefit cost analysis refers to analyzing the desirability of project where…

Q: What is the reason P/E Ratio become lower and higher?

A: The Price Earnings Ratio or P/E Ratio defines the relationship between the stock price and earning…

Q: What should be done to apply rate-of-return analysis correctly?

A: Rate of return: It can be defined as the rate of interest that has been earned by the company on the…

Q: Why are comparative ratio analyses useful?

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