PERSONAL FINANCE ETEXT TURNING MONEY
8th Edition
ISBN: 9780136879015
Author: KEOWN
Publisher: PEARSON
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Chapter 12, Problem 3DC2
Summary Introduction
To explain:
Importance of corporate earnings in valuation of common stocks,
Introduction:
Corporate earning is the net income after tax of a company which is remaining after the payment of all the expenses in a financial year.
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PERSONAL FINANCE ETEXT TURNING MONEY
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- Explain 18. Which of the following is not a financing activity?* Repayment of long-term debt Issuance of equity Investments in businesses Payment of dividends.arrow_forwardExplain. What is working capital?* Equity Capital + Retained Earnings Equity Capital - Total Liabilities Total Assets - Total Liabilities Current Assets - Current Liabilitiesarrow_forwardExplain Which of the following is not true about goodwill?* Goodwill needs to be evaluated for impairment yearly Goodwill is treated as a tangible asset in accounting Goodwill is a result of purchasing a company for a price higher than the fair market value of the target company's net assets Goodwill can be comprised of things such as good reputation, loyal client base, and brand recognition.arrow_forward
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