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what is the difference between business risk and financial riskbusiness risk refers to the improbability a company has with regard to its operating
why is the coefficient of variation often a better risk measure when comparing different projects than the standard deviationwhenever we wish to
explain the risk-return relationshipthe relationship among risk and required rate of return is known as the risk-return relationship it is a
what is risk aversion if common stockholders are risk averse how do you explain the fact that they often invest in very risky companiesrisk aversion
what actions should be taken if analysis of pro forma financial statements reveals positive trends negative trendswhen examine the pro forma
what do financial managers look for when they analyze pro forma financial statementsafter the pro forma financial statements are finished financial
explain the significance of the term additional funds neededwhen the pro forma balance sheet is finished total liabilities and total assets and
explain how management goals are incorporated into pro forma financial statementsmanagement put a target goal and forecasters makes pro forma
explain how the cash budget and the capital budget relate to pro forma financial statementsthe cash budget demonstrates the projected flow of cash in
describe the sales forecasting processsales assumptions are a group effort marketing and sales personnel usually provide assessments of demand and
what is the primary assumption behind the experience approach to forecastingthe experience act to forecasting is based on the assumption that things
why do businesses spend time effort and money to produce forecasts explainbusinesses fail or succeed depending on how well prepared they are to
why are trend analysis and industry comparison important to financial ratio analysistrend analysis assists financial analysts and managers see
why would an analyst use the modified du pont system to calculate roe when roe may be calculated more simply explain in fact an analyst wouldnt use
under what circumstances would market to book value ratios be misleading explain the market to book ratio is helpful however it is only a
which ratios would a potential long-term bond investor be most interested in explain potential and current lenders of long-term funds such as
which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan explainbankers
why do analysts calculate financial ratios ratios are comparative measures for the reason that the ratios show relative value they permit
what is a financial ratio a financial ratio is a number that convey the value of one financial variable relative to another put more easily a
identify whether the following items belong on the income statement or the balance sheeta interest expense
why do financial managers calculate the marginal tax ratefinancial managers utilize marginal tax rates to calculate the future after-tax cash flows
how do financial managers calculate the average tax rateaverage tax rates are computed by dividing tax dollars paid by earnings before taxes
what are the three major sections of the statement of cash flowscash flows from financing activitiescash flows from investing activitiescash flows
what is accumulated depreciationdepreciation is the provision of an assets initial cost over time accumulated depreciation is the sum of all the
explain how earnings available to common stockholders and common stock dividends paid from the current income statement affect the balance sheet item