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ad-work [718]
3 years ago
14

. Information found on the company's income statement and balance sheet is extracted from these documents and examined more clos

ely through the use of
Business
2 answers:
zhenek [66]3 years ago
8 0

Answer: Ratio Analysis

Explanation;

Ratio analysis is a very important method of financial analysis that enables one to make inferences and see relationships from the data presented by a company in it's financial statements.

Most ratios are divided into 5 different types being;

  • Profitability
  • Liquidity
  • Activity
  • Debt, and
  • Market

An example of a Liquidity ratio would be the Current Ration which divides Current Assets by Current Liabilities to see if the company has enough liquidity to pay off current liabilities.

Degger [83]3 years ago
3 0

Answer:

Ratio analysis

Explanation:

Financial statements are used to show the assets, liabilities, revenues, expenses, and owners equity of a business entity within a given time frame.

Income statement is revenue less expense within a given period. While the balance sheet shows the financial position of a business at a particular point, that is its assets, liabilities, and owner equity.

Information form financial statements are analysed by the use of ratio analysis to gain a better understanding of financial condition of an organisation.

Ratio analysis compares the magnitude of line items within financial statements to determine liquidity, profitability, solvency and operational efficiency of a business.

For example current ratio shows how well a business can use its current assets to settle its current liability, this is a liquidity ratio.

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5 0
3 years ago
Read 2 more answers
The underlying assumption of the dividend growth model is that a stock is worth: Group of answer choices
saul85 [17]

Answer:

B

Explanation:

A. the same amount to every investor regardless of their desired rate of return.

B. the present value of the future income which the stock generates.

C. an amount computed as the next annual dividend divided by the market rate of return.

D. the same amount as any other stock that pays the same current dividendand has the same required rate of return.

the dividend models are used to determine the value of a stock. It is assumed that the value of the stock is equal to the present value of the cash flows or dividends of the stock

The intrinsic value of a stock can be calculated using various dividend models. some of dividend growth models include:

1. The Gordon constant growth dividend model

2. The two-stage dividend growth model

3. The H-model

4. The three-stage dividend growth model

For example, if the dividend of a share in year 1 and 2 is 50 respectively and the discount rate is 10, the present value of the firm =

50 / (1.1) + 50 / (1.1^2) = 86.78

8 0
3 years ago
Alison Jacobs (single) purchased a home in Las Vegas. Nevada for $400,000. She moved into the home on September 1, year O. She l
Mrac [35]

Answer:

$3,750

Explanation:

Capital Gain tax is paid on the sale property value. According to tax rule if you sale your residence building the first $250,000 is exempt from the tax and the amount above this value will be taxed using rate of 15%.

Total Amount of Gain = $275,000

Amount Exempted = $250,000

Taxable value = $275,000 - $250,000 = $25,000

Tax value = $25,000 x 15%= $3,750

3 0
4 years ago
Suppose you have just​ retired, have accumulated many luxury goods over the​ years, still owe a mortgage on your​ home, still ha
Pavlova-9 [17]

Answer:

review your progress, reevaluate, and revise your plan

Explanation:

Based on the information provided within the question it can be said that in this scenario the step that you have completely neglected is to review your progress, reevaluate, and revise your plan. That is because in this scenario many events have occurred, and it seems that your financial plan after retirement has not been adjusted with each and every one of these life events. Therefore it is outdated and most likely not providing the benefits it once did.

3 0
3 years ago
A depreciation of the u. S. Real exchange rate induces u. S. Consumers to buy:.
Galina-37 [17]

A depreciation of the u. S. Real exchange rate induces u. S. Consumers to buy more domestic goods and fewer foreign goods.

<h3>What is depreciation?</h3>

This is a term that is used to refer to the fall in the value of a currency. It is a fall in the currency of a country compared to that of other currencies.

At a time where there is a depreciation, people would want to buy more of the goods that are made in their country.

Read more on depreciation here:

brainly.com/question/25297296

8 0
2 years ago
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