Because the analyst is compelled to make assumptions for model inputs, valuation research is primarily based on science with a small amount of art. Bond and stock valuation are a few further uses, along with capital budgeting. The concept that its future earnings potential, a sum of money, is worth more today than it will be later.
What is valuation analysis?
A technique called valuation analysis is used to determine the approximate value or worth of any kind of asset, including businesses, stocks, fixed-income securities, commodities, real estate, and other assets.
Because the analyst must make assumptions for model inputs, valuation analysis is primarily a scientific process but also involves certain artistic elements. An asset's worth is essentially the sum of its present value (PV) for all anticipated future cash flows.
The time value of money is used in various financial contexts, such as capital planning, bond and stock valuation. Finding what a current investment will increase to in the future is the process of determining future worth. Compounding is the term for this.
Hence, the significance of the valuation analysis is aforementioned.
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Answer:
The first step in target marketing is to assess which of the newly created segments offer the greatest profit potential.
Explanation:
This alternative is correct because in the realization of a target marketing because the first step to introduce yourself in some market segment is to analyze which one has the highest profit potential. This step is essential because when a company directs its activities to reach specific customers, data must be surveyed to analyze consumer characteristics that will be essential to the success of the business.
Answer:
<u>Riverbed Company</u>
<u>Income statement for the year July 31, 2022</u>
Service revenue 61,900
<u>Add Other Incomes</u>
Rent revenue 8,500
70,400
<u>Less Expenses</u>
Salaries and wages expense 52,000
Utilities expense 22,600
Depreciation expense 3,500 (78,100)
Net Income / Loss (7,700)
Explanation:
In the Income Statement, we record Revenues and Incomes only. This Statement is used to calculate the Profit earned during the Reporting Period.
Answer:
Adriana Corporation
Using the High and Low method the Variable and Fixed portions of the Total Cost is:
Fixed Costs = $247,420
Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790
B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)
= $543,670
Explanation:
The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)
It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low
The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs
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Answer:
because you spend 1k or more