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1 year ago

Why is it misleading to compare a company’s financial ratios with those of other firms that operate within the same industry?

1 answer:

3 0

Comparing financial ratios of companies within the same industry may be misleading because some companies may have investments in other industries that could distort the comparison.

Why do small business owners compare their ratios to other firms in the same industry?

Ratios can highlight trends in specific industries and establish benchmarks for measuring the performance of all industry participants. Small businesses can compare their success to the performance of the industry as a whole by using industry benchmarks to develop organizational strategies.

Why is it complicated to compare a given ratio of two companies operating in different sectors industries?

It could be necessary to compare various divisions to various industry averages. Very large corporations may be made up of various divisions that produce various goods or provide various services. To make ratio analysis meaningful, distinct industry averages must be employed for each respective division.

Learn more about Ratio analysis: brainly.com/question/20715261

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F 1What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1

Llana [10]

Answer:

When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate

If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.

YTM if market price is 887 = 10.7366190%

YTM if market price is 1,134.2= 7.1764596%

Explanation:

For the YTM we can calculate an estimated using the following formula:

$YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}$

Where:

C= coupon payment 1,000 x 9% = 90

F= face value of the bonds = 1000

P= market price = 887

n= years to maturity = 10

YTM = 10.7366190%

$YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}$

C= 90

F= 1000

P= 1134.2

n= 10

YTM = 7.1764596%

A more precise answer can be achieve using excle or a financial calculator.

7 0

3 years ago

Jessica Simpson sets up shop to sell “Buffalo Wings.” She observes that if the price drops from $3.50 per order to $2.50 per ord

Sidana [21]

Answer:

(I) Price elasticity = 1/6

(II) the $2.5 price gives the higher revenue: 1,250

Explanation:

(I) price elasticity

$E_s =\frac{\frac{Q2 - Q1}{(Q2+Q1)/2}}{\frac{P2 - P1}{(P2+P1)/2}}$

↑Q (500 - 300)/((500+ 300) / 2)

↑Q 200 / (800/2) = 200/400 = 1/2

↑P (3.5 - 2.5)/((3.5+2.5)/2)

↑P 1/(6/2) = 1/3

$Es = \frac{1/2}{1/3} = 1/6$

(II) total revenue

3.5 x 300 = 1,050

2.5 x 500 = 1,250

7 0

3 years ago

Read 2 more answers

Samantha is preparing a presentation about using waste to create soil compost. She plans to include a video that demonstrates co

Morgarella [4.7K]

Answer:

I'm thinking C

Explanation:

This seems really written in a smart aleck way. It could be D also though.

8 0

3 years ago

Which feature can be used to accomplish this?UVC wants to standardize their business logic. They want to ensure that workflow or

Anestetic [448]

Answer:

UVC wants to standardize to ensure that workflow order is guaranteed to the same each time. The feature that can be used to accomplish this is:

(A) Lightning Process Builder

(D) Visual Workflow

Explanation:

Lightning Process Builder is such a tool in workflow that allows your company without writing any line of code to easily automate the processes involved in the business like customer on-boarding. So UVC can use this feature to accomplish their goal.
Visual Workflow is such a tool that works which gives you drag and drop features in the workflow. They are more user-friendly due to their visualization feature so this feature can be used by the UVC.
The option B and C are not correct as they are not the good options as compared to other features as Workflow is not efficient as compared to Visual Workflow.

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2 years ago

Why is training important <br>

Ray Of Light [21]

<u>These reasons include</u>:-

Increased job satisfaction and morale among employees.
Increased employee motivation.
Increased efficiencies in processes, resulting in financial gain.
Increased capacity to adopt new technologies and methods.
Increased innovation in strategies and products.
Reduced employee turnover.

8 0

3 years ago