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
Alborosie
3 years ago
9

John, who has just completed his first finance course, is unsure whether he should take a course in business analysis and valuat

ion using financial statements, since he believes that financial analysis adds little value, given the efficiency of capital markets. Explain to John when financial analysis can add value, even if capital markets are efficient.
Business
1 answer:
Irina18 [472]3 years ago
3 0

Answer:

Following are the solution to the given question:

Explanation:

The financial analysis allows you to understand the strong a corporation's finances throughout the study of capital markets, which's very helpful. Mercedes typically produce short-term misprice for resources as well as the returns are created by an investor/fund manager. These gains also are called Alpha. Economic analysis shows whether an organization handles its money. Economic reporting in project management is useful to recognize its competitive edge of a capital market business and, ultimately, that company(asset) sells efficiently over a lengthy sector.

You might be interested in
On January 1, 2019, Providence, Inc., Issues $1,000,000 of 10 percent, 5-year bonds at par value. Complete the necessary journal
loris [4]

Answer:

01-Jan-19

Dr Cash $1,000,000

Cr Bonds Payable $1,000,000

Explanation:

Preparation of the Journal entry for Providence, Inc

Based on the information given we were told that the company issues the amount of $1,000,000 of 10% which include 5-year bonds at par value on January 1, 2019, this means that the Journal entry will be recorded as:

01-Jan-19

Dr Cash $1,000,000

Cr Bonds Payable $1,000,000

(To record bonds at par value)

3 0
4 years ago
If a firm shuts​ down, it A. will earn enough revenue to cover its variable costs but not all of its fixed costs. B. will produc
____ [38]

Answer:

The answer is: C) will suffer a loss equal to its fixed costs.

Explanation:

If a company shuts down its production temporarily (not permanently), it will stop receiving revenue from the goods it used to produce but at the same time will not be spending any money on variable costs. The company will suffer losses equivalent to its fixed costs (e.g. depreciation costs, rent, etc.).

A company decides to shut down its production when the revenue it receives from selling its products doesn't even cover their variable costs. That means it is losing money by producing its goods.

6 0
4 years ago
Which of the following terms refers to an ongoing process of making decisions that guides the firm both in the short term and fo
emmasim [6.3K]

Answer: Business plan.

Explanation:

A business plan is a goal/objective set by a business that it intends to use to successfully enter into a market. The business plan provides a guide on how daily operations in a business can be handled to best achieve it's objectives.

6 0
3 years ago
___________ refers to the short distance movement that usually takes place within the confines of a building such as a plant or
steposvetlana [31]

Answer:

d. materials handling.

Explanation:

That's the correct answer. Hope that helps

3 0
2 years ago
Bond valuation [LO14-2] Your investment department has researched possible investments in corporate debt securities. Among the a
Sonbull [250]

Answer:

Bond Valuation

Other things being equal, the bond issue that offers the most attractive investment opportunity if it can be purchased at the prices stated is:

= BB Corp. bonds.

Explanation:

a) Data and Calculations:

Maturity period = 20 years

Issue date = January 1, 2021

Maturity date = December 31, 2040

Company      Bond Price       Stated Rate  Annual Interest    FV

1. BB Corp.    $ 107 million           15 %          $15 million     $3,518,371,301.23

2. DD Corp.  $ 100 million           14 %           $14 million    2,827,106,832.58

3. GG Corp.  $ 93 million             13 %          $13 million    2,260,756,079.53

From an online financial calculator, the future values of the bonds are:

N (# of periods)  20

I/Y (Interest per year)  15

PV (Present Value)  107000000

PMT (Periodic Payment)  15000000

Results

FV = $3,518,371,301.23

Sum of all periodic payments $300,000,000.00

Total Interest $3,111,371,301.2

N (# of periods)  20

I/Y (Interest per year)  14

PV (Present Value)  100000000

PMT (Periodic Payment)  14000000

Results

FV = $2,827,106,832.58

Sum of all periodic payments $280,000,000.00

Total Interest $2,447,106,832.58

N (# of periods)  20

I/Y (Interest per year)  13

PV (Present Value)  93000000

PMT (Periodic Payment)  13000000

Results

FV = $2,260,756,079.53

Sum of all periodic payments $260,000,000.00

Total Interest  $1,907,756,079.53

8 0
3 years ago
Other questions:
  • The consumer surplus from​ water, which is​ cheap, is​ ______ than the consumer surplus from​ gold, which is expensive. The tota
    10·1 answer
  • 2 features of public limited companies
    11·1 answer
  • Which markets compete in non-price competition?
    5·1 answer
  • What is the answer because I don’t know
    13·1 answer
  • Variable costs are Group of answer choices
    5·1 answer
  • Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a ca
    9·1 answer
  • Where would you go to set up margins on a letter?
    10·2 answers
  • Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours a
    14·1 answer
  • What activity invokes using fossil fuels directly indirectly
    12·1 answer
  • How does comparative advantage affect trade between countries
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!