1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A company purchased equipment valued at $120,000. It traded in old equipment for a $95,000 trade-in allowance and the company pa
Zepler [3.9K]

Answer:

$120,000

Explanation:

Data provided in the question

Purchase value of an equipment = $120,000

Trade in allowance = $95,000

Paid cash = $25,000

Cost of an old equipment = $110,000

Accumulated depreciation = $33,000

So by considering the above situation, the recorded value of the equipment is $120,000 as the cash is paid for $25,000 and the trade in allowance is $95,000

So it would be equal to the purchase value i.e $120,000

8 0
3 years ago
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8
Alisiya [41]

Answer:

$35,010,000

Explanation:

Calculation for the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Cash flow = $11.4 million + $22.6 million + $1,010,000

Cash flow = $35,010,000

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,010,000

4 0
3 years ago
. You have room for up to two fruit-bearing trees in your garden. The fruit trees that can grow in your garden are either apple,
Alina [70]

Answer:

you should have 2 apple trees

Explanation:

<u>you can have</u>                           <u>savings</u>            <u>costs</u>            <u>net payoff</u>

no tree at all                                0                      0                     0

1 apple tree                               $130                $100                $30

1 orange tree                            $90                  $70                 $20

1 pear tree                                $145                 $120                $25

<u>2 apple trees                           $260               $200                $60</u>

2 orange trees                         $180                $140                 $40

2 pear trees                             $290               $240                $50

1 apple + 1 pear tree                $275               $220                $55

1 apple + 1 orange tree            $220               $170                 $50

1 orange + 1 pear tree              $235               $190                 $45

8 0
3 years ago
Dave is a handsome and famous celebrity. he has been dating gabriela, a beautiful and popular actress, for the past two months,
Leto [7]
According to the investment model there should be a degree of satisfaction in the relationship to have stability. But Dave doesn't have that commitment which means he is not satisfied with his relationship. This led him to be attracted with other women he worked with. He felt that these women showed interest to him and he thought of this can be the opportunity to find someone else. This is his alternative to find satisfaction that he is looking for.
4 0
3 years ago
Which of the following does not use any type of computer code in their work?
stira [4]
Computer user support
6 0
3 years ago
Read 2 more answers
Other questions:
  • Elise is the marketing manager in a travel company. She is planning to place an advertisement in local newspapers to promote her
    14·1 answer
  • A company is considering an iron ore extraction project that requires an initial investment of​ $1,400,000 and will yield annual
    6·1 answer
  • Mr. Gupta is also considering giving his employees a raise that would increase total salaries by $35,000.00 per year. What effec
    8·1 answer
  • The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage
    11·1 answer
  • Three Guys Burgers, Inc., has offered $18 million for all of the common stock in Two Guys Fries, Corp. The current market capita
    11·1 answer
  • In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a tota
    7·1 answer
  • Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During Jun
    15·1 answer
  • Who's good a economics?
    11·1 answer
  • Watch the video "forms of marketing research." company a is thinking about bringing to market a new product in a category where
    6·1 answer
  • Assume that the market for pencils is perfectly competitive. The market equilibrium price is $0.50 and Perry's Pencil Company ha
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!