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Aleksandr [31]
3 years ago
14

You are a professional financial analyst that is employed to help evaluate possible merger and acquisition candidates. You have

already reviewed the numbers, and the company seems solid on paper. You are unable to make a visit to the company yourself and are instead sending one of your direct reports to conduct the visit on your behalf. This is his first site visit, and he wants to review the work you have already done to familiarize himself with the company and asks for advice on things to look for. You offer to give advice on ways to find out if the company is "cooking its books" and what to look for when you conduct a "smell test."
What financial ratios should he be looking at and what do they tell you?
Business
1 answer:
kipiarov [429]3 years ago
4 0

Answer:

Explanation:

Below are some of the financial ratios he should consider:

a) Financial leverage ratios: This is used to measure the company earnings to service debt payments.

b) Return on investment: This is the ratio that is used to evaluate the profitability of the firm and the profit that is available to the stakeholders after all payments have been made.

c) Price to Earnings Ratio: This is an indicator of the price of the company's stock concerning the earnings per share. It is used to analyze if the stock price is over-priced or under-priced.

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3 years ago
Which of the following statements concerning income tax rate structures is false?
soldi70 [24.7K]

Answer:

a) Under a progressive rate structure, the marginal rate and the average rate are equal

Explanation:

There are basically three types of tax structure which are as follows

1. A regressive tax levied the similar percentage in the goods that are purchased irrespective of the income of the buyer it would not be good for the poor earners

2. A proportional tax levied the similar tax rate for all types of individuals irrespective of the income

3. A progressive tax levied the high percentage who has higher income as they can afford to pay more and the lower percentage for the lower income and vice versa.

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7 0
4 years ago
Operating income and tax rates for C.J. Company’s first three years of operations were as
Oksana_A [137]

Answer:

Correct option is C ; the DTA - Deferred tax asset  is $300,000

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Hence the DTA - Deferred tax asset  is $300,000

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