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Lilit [14]
4 years ago
8

One important difference between capital budgeting and security analysis is that in security analysis the analyst must generally

take the projected cash flows as given rather than something the analyst can influence, whereas firms can often influence the cash flows from projects by making operating changes. True or false?
Business
1 answer:
Rashid [163]4 years ago
8 0

Answer: True

Explanation:

Capital budgeting is the method used in the planning process in the organisations used to evaluate the long term project investing. Security analysis is the method of determining the proper value of debt, equity or hybrid securities of an organisation.

In simple words capital budgeting is an evaluation method and security analysis is the valuation method. Capital budgeting is done fro the data that is usually expected in nature whereas security analysis is done on the data which already exists in market.

Security analysis is done for valuing the securities thus the cash flows are given and we have to use that data for valuation purposes but in capital budgeting we can influence the cash flows as we have an objective to achieve .

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At the end of its first year of operations, shapiro's consulting services reported net income of $27,000. they also had account
Otrada [13]
Answer: $11,200

Explanation:

Using the accounting equation:

(Total Assets) = (Total Liabilities) + (Total Capital)

So,

(Total Liabilities) = (Total Assets) - (Total Capital)    (1)

Based on equation (1), in order to compute for the total liability, we need to compute the total assets and total capital.

At the end of the first year, the following are the assets Shapiro's consulting services (together with the amount):

Cash:                              $16,000
Office Supplies:                $3,200
Equipment:                     $24,000
Accounts Receivable:       $8,000
TOTAL ASSETS            $51,200

Note that the total assets is obtained by adding the amount (or value) of the all the assets listed above.

Since the net income is an increase (or decrease if it's a net loss) of capital, we classify net income as capital. In particular, the net income of Shairo's at the end of first year adds to the capital at the start of first year. 

Moreover, the withdrawal of money by the owner also decreases the capital.  

Thus, the total capital at the end of first year is calculated as follows:

Capital (start of the year):            $15,000
Net Income (end of year):           $27,000   
Withdrawal Amount:                    ($2,000)
TOTAL CAPITAL:                       $40,000

Note: ($2,000) means -$2,000. This notation is used in accounting.

Hence using equation (1), the total liabilities at the end of first year is given by

(Total Liabilities) = (Total Assets) - (Total Capital)
                           = $51,200 - $40,000
Total Liabilities = $11,200

7 0
3 years ago
List the importance of physiotherapist and dentist
KatRina [158]

Answer:

Importance of physiotherapist:

1. They help people affected by injury,illness or disability through movement and exercise,manual therapy, education and advice.

2. They maintain health for people of all ages, helping patients to manage pain and prevent diseases.

3. Manage heart and lungs problem.

4. Recover from or prevent a sports injuries.

Importance of dentists:

1. Dentists helps to keep your teeth and mouth healthy.

2. It helps to prevent from tooth decay.

3. Protects against gum diseases, which can lead to tooth decay.

7 0
3 years ago
You can do financial transactions through mobile banking using a A.Smartphone B. Home phone C.Smart Card D.Computer
Igoryamba

Apex answer: Smartphone

6 0
4 years ago
Renee receives an email that claims to be from her lender. The email has an odd appearance and grammatical errors. She recognize
AysviL [449]

Answer:

hacking

Explanation:

if it has an odd appearance and errors it's most likely a hacker/scam

7 0
3 years ago
The nominal group technique, a variation on open brainstorming, primarily helps:
juin [17]

Answer:

The correct answer is letter "D": equalize hierarchical or status differences among members of a group.

Explanation:

The Nominal Group Technique (NGT) is a method of brainstorming ideas in a group that starts by having the members writing down their perceptions on certain matters to later expose them to the rest of the group. Collectively, all the group members decide which idea is the best to solve the issue they have in common.

Under those circumstances,<em> the NGT treats each of the opinions of the individuals involved equally regardless of the hierarchy they may occupy in the group.</em>

8 0
4 years ago
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