Answer:
The correct answer is letter "E": strategic plan.
Explanation:
The strategic plan of a company is a managerial tool that allows companies to establish what to do and the path that it has to walk to reach its set objectives considering the changes in demand of its surrounding environment. In such a way, it is a critical key for decision-making within any entity.
<em>The strategic planning provides a real frame for managers and stakeholders so they can understand and evaluate the current situation of the company moreover when the firm is struggling or pursuing exploring new markets.</em>
Answer:
Saving can only be done in person. Investing can be done both in-person and online.
Explanation:
Saving refers to keeping some funds aside for use during emergencies. Individuals and institutions also save as a way of accumulating funds for a specific intention. Banks and other deposit-taking institutions offer saving services to pool funds and lend them for investment and consumption.
Saving will attract lower interest rates, sometimes below the inflation rate. Banks offer lower rates on saving and charges a higher interest rate to borrowers to make profits. Because saving offer lower returns, they are suitable for short-term periods. Savings are relatively safer than investment.
Investments offer higher returns but have a higher risk. Due to their price volatility, investments are suited for the long-term to safeguard against price fluctuations.
Answer: C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down.
Explanation:
Market Cap = P/E ratio * Earnings
Market cap is dependent on both the P/E ratio and Earnings as shown by the formula and as shown on the graph, the P/E ratio kept on decreasing which means that for the Market Cap to decrease, the downward pull of the P/E ratio must have overshadowed the growth in earnings such that the Market Cap went down instead of up.
For instance, if the earnings were $40 billion and the P/E ratio was 15, Market Cap would be $600 billion.
If earnings increased to $45 billion but P/E ratio decreased to 10, Market Cap would become $450 billion.
Answer:
The correct answer is option A.
Explanation:
The present value of all free cash flows gives the share value under the free cash flow approach to valuation. It is also called a discounted cash flow valuation.
