Who has the highest NPV?

Q: What is the carryover ratio? What parameters of the base does its value depend on?

A: Carryover Ratio The purpose of measuring the carryover ratio  is to determine the ratio which are…

Q: How to compute the PV Factor?

A: The PV factor allows you to discount a future value to a present value. The formula to determine the…

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: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

Q: Explain noncumulative pari passu distribution?

A: Pari passu refers to equal footing in Latin. It is the situation where all the stakeholders of the…

Q: What is fundamental beta?

A: Introduction: Beta is nothing but a metric used to assess a portfolio’s uncertainty or risk, with a…

Q: What does ROI measure?

A: Return on Investment: Return on Investment is a profitability measure which determines a company's…

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 are the reasons why buyer would prefer to purchase asset rather than stock

A: In an asset purchase, the buyer agrees to purchase specific assets and liabilities. This means that…

Q: The role of regulators in mitigating Earnings Management activities

A: Earnings management refers to the practices undertaken by corporate management to intentionally…

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: ut how is this related to CAPM and beta?

A: The Capital asset pricing tells that the how much should be required rate based on the risk of the…

Q: What is the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: What is opportunity cost rate?

A: The opportunity cost is the cost of the option or alternative missed due to the acceptance of the…

Q: What is the difference between I and G spread measures?

A: The yield spread of the bond reflects the difference between the YTM(Yield to Maturity) of various…

Q: Define average return

A: The formula to compute average return as follows:

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: how do I calculate the PV factor?

A: PV factor is the present value of future cash flow of $1 after n years.

Q: What is PV ratio? How do you calculate it?(explain with an example)

A: PV ratio is the ratio that represents the function of sales and contribution. This shows the…

Q: What is historical beta?

A: Step 1: Introduction Beta is a measure of systematic risk or it measures the volatility of a stock…

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: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…

Q: Explain Measures of Variance and Risk?

A: Variance tests normal or normal variability. Variability is volatility for investors, and volatility…

Q: what is Political cost hypothesis ?

A: The financial statement will be prepared by the company to know the financial position of the…

Q: What is the NPV of the project?

A: Capital budgeting is the process of project evaluation a business undertakes in order to evaluate…

Q: you find the PV factor?

A: The are two types of PV discount factors used PV Annuity  is used for a series of cashflows that…

Q: What is optimal distribution policy?

A: Optimal distribution policy can serve as a overall outline on how information can be communicated…

Q: What are representative strengths of NPO?

A: Non Profit Organisations (NPO) are expected to be driven by a need to fulfill a social purpose…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.