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Nataliya [291]
3 years ago
13

Give examples of how ratios gleaned from the financial statements can be used as a tool in helping a firm plan for the future. W

hat do these ratios tell an an individual analyzing them? What limitations prevent the forecasts from being foolproof?
Business
1 answer:
Delvig [45]3 years ago
4 0

Answer:

Evalute risk and return

Explanation:

Various financial and accounting ratios are used to evaluate firms future, and they play an essential part in developing the financial statement. Overall, the most important factor they play is to plan for the future by carefully analyzing the firm's risk and return by using different ratios such as Liquidity Ratios, Leverage Ratios and Activity Ratios. They help to understand and predict the outcomes of certain investments and they point out the right investment and operation techniques to achieve desired outcomes. The market can change or later the whole decisions, and that makes it unpredictable to a certain extent.

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Thirty-year-old Henry tells his wife that he has 51,000,000 saved already. She tells him they should go on a big vacation soon.
Dimas [21]

Answer:

A

Explanation:

5 0
3 years ago
As part of their marketing strategy, companies will identify a _______, a group of similar people whose interest the company wan
Alina [70]

As part of their marketing strategy, companies will identify a target market, a group of similar people whose interest the company wants to gain.

<h3>What is a target market?</h3>

A target market is a group of customers which could be in the same area that have interest in a particular product.

They are usually identified as the most likely buyers of a product or service.

Therefore, as part of their marketing strategy, companies need to identify a target market, a group of similar people whose.

For more information on target market kindly check

brainly.com/question/24967768

5 0
2 years ago
Which of the following is NOT a factor that favors effective team behavior? Close physical layout of team members Leadership tha
soldi70 [24.7K]

Answer:

Individual rewards for contributions to the team

Explanation:

A team should share rewards among themselves not to individuals, because effective teams are made of collaborators not competitors. By giving individual rewards for contributions to the team it reduces how effective the team behavior is.

For example, if a particular team is giving certain rights over others, there may begin to exist a competitive spirit amongst the team.

5 0
3 years ago
Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%. Security "X" goes up on average by 29%
Alex

Answer:

The expected return on security with a beta of 0.8 is closest to 7.2%.

Explanation:

This can be determined as follows:

Since the return of security Z remains at 4% despite the change in the market, security Z is the risk-free asset.

Note that a risk free asset is an asset which its returns does not change with change in the market.

Using the Capital Asset Pricing Model (CAPM) formula, we have:

Er = Rf + (B * MPR) ............................................ (1)

Where;

ER = Expected return = ?

Rf = Risk-free rate = Rate of return of security z = 4%

B = Beta = 0.8

MPR = Market risk premium = Expected return on the market rate - Risk-free rate

Expected return on the market rate = (50% * 24%) + (50% *(-8%)) = 8%

Therefore, we have:

MPR = 8% - 4% = 4%

Substituting the values into equation (1), we have

Er = 4% + (0.8 * 4%)

Er = 0.072, or 7.2%

Therefore, the expected return on security with a beta of 0.8 is closest to 7.2%.

8 0
3 years ago
The act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Securi
raketka [301]

Answer:

Federal Insurance Contributions Act

Explanation:

The Federal Insurance Contributions Act refers to a law that establishes the federal taxes that are deducted from employees' salaries to get the funds for social services like Medicare, disability insurance, among others. According to  this, the answer is that the act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the Federal Insurance Contributions Act.

5 0
3 years ago
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